Cost And Benefit Analysis In Economics
Rational choice is the choice based on pure reason and without succumbing to one’s emotions or whims. Consumers can decide about the rational decision by using cost and benefit analysis.
Rational choice is a general theory of human behaviour that assumes individuals try to make the most efficient decisions possible in an environment of scarce resources. By “efficient” it is meant that humans are “utility maximizes” – for any given choice a person seeks the most benefit relative to costs. Consumers can make about the rational decision by using cost and benefit analysis.
Consumers want to maximize their level of satisfaction relative to their cost. Rational choice is also the optimal choice.
Optimum
Optimum means producing the best possible results (also optimal).
Equity in Economics
Equity in economics means a situation in which everything is treated fairly or equally, i.e. according to its due share. So if the lives of all individuals are deemed to have equal value, equity would demand that all of them have equal financial net worth.
Nepotism
Nepotism means doing unfair favours for near ones when in power.
Rational Choice
Rational choice is the choice based on pure reason and without succumbing to one’s emotions or whims.
Barter Trade
Barter trade is a non-monetary system of trade in which “goods” not money is exchanged. This was the system used in the world before the advent of coins and currency.
