Going Skiing Will Cost Adam $80 a Day

question 8

Multiple Choice

Going skiing will cost Adam $80 a day. He also loses $40 per day in wages because he has to take time off from work. Yet, Adam still decides to go skiing.

• A) He loses a total of $120 per day, so his decision is irrational.
• B) Adam is definitely making a decision that is in the social interest.
• C) Adam's lost $40 per day in wages is not an opportunity cost and so did not affect his decision.
• D) His decision is rational if Adam's marginal benefit of spending a day skiing is greater than his marginal cost.
• E) The $80 price of skiing is not an opportunity cost and so did not affect Adam's decision.

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Definitions:

Common Law Recourse

Legal remedies or actions available to individuals under the judicial system based on customs and judicial precedent, rather than on statutes.

Faulty or Dangerous Product

A product that fails to meet safety standards, posing potential risks to users or the environment.

Breach of a Condition

A violation of a stipulated essential term or requirement in a contract, potentially leading to the right to terminate the agreement and seek redress.

Sale of Goods Act

A legal act regulating the sale of goods, ensuring certain standards like goods being as described, of satisfactory quality, and fit for purpose.