Grades Are Low in Your Biology Class,so Your Professor Offers

question 25

Multiple Choice

Grades are low in your biology class,so your professor offers an optional 10-point extra-credit assignment.Most of the students turn in the assignment.Which economic prinicple does this statement BEST represent?

• A)The true cost of something is its opportunity cost.
• B)"How much" is a decision at the margin.
• C)People usually respond to incentives,exploiting opportunities to make themselves better off.
• D)There are gains from trade.

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Definitions:

Surety

A form of security or guarantee where a third party agrees to be responsible for the debt, default, or failure of another to fulfill an obligation.

Subject To

Conditional upon or dependent on something else; can indicate subjection to legal restrictions or conditions.

Personally Liable

Refers to the responsibility of an individual to cover debts or legal judgments out of their own assets.

Mortgage

A legal agreement in which property is used as collateral for the repayment of a loan.