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Suppose That Every Time You Go to the Library to Study

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Suppose that every time you go to the library to study economics you buy yourself soda (S) and candy bars (C) as an incentive to study. Having mastered the material on rational choice you always allocate your study snack budget so that MUS/PS = MUC/PC. What should you do if one night you discover that the price of a can of soda has increased?


Definitions:

Human Capital

Proficiencies, education, and experiences attributed to an individual or a group, appraised concerning their fiscal value or expense to a business entity or a national economy.

Social Processes

Patterns of interaction between individuals and groups that shape society and social change over time.

Political Processes

The methods and actions through which political decisions, policies, and laws are formed, decided, and implemented.

Economic Processes

The series of methods and activities by which goods and services are produced, distributed, and consumed in an economy.

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