Question

What is the golden rule of​ decision-making in economics? _ = _

Answer 1

In economics, decision makesr is taken as a rational person.

In other words, in economics, it is assumed that a person is rational and takes decision that maximizes his or her utility and decisions are generally taken on the margin.

This means that while taking a decision, a person compares marginal benefit of decision with marginal cost of decision.

Decision can be optimal, if marginal benefit equals marginal cost.

So, the golden rule of decision making in economics is that a decision should be taken if the marginal benefit of decision equals the marginal cost of decision.