Tim Is at a Party

question 95

Multiple Choice

Tim is at a party.The 7^th beer that Tim consumes will produce an extra benefit of 10 cents and has an extra cost of zero.The cost-benefit principle predicts that Tim will

• A) realize he has had too much to drink and go home.
• B) drink the 7^th beer and continue until the marginal benefit of drinking another beer is zero.
• C) drink the 7^th beer and continue until the marginal benefit of drinking another beer is negative.
• D) not drink the 7^th beer.
• E) drink the 7^th beer and then stop.

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Definitions:

Fight or Flight

A physiological response to perceived threats that prepares the body to either confront or flee from the threat.

Sympathetic Nervous System

A part of the autonomic nervous system that prepares the body for "fight or flight" responses during stressful situations.

Efferent Nerve Fibres

Nerve fibers that carry impulses away from the central nervous system to effectors such as muscles or glands.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for processing and transmitting information throughout the body.