Michael Is a College Student

question 126

Multiple Choice

Michael is a college student.He can either buy a textbook for $100 or save up for a road trip he wants to take during the summer.This illustrates the principle that

• A)trade can make everyone better off.
• B)people face trade-offs.
• C)rational people think at the margin.
• D)people respond to incentives.

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Definitions:

Unconditioned Responses

Automatic, natural reactions to a stimulus that occur without any prior learning or conditioning.

Respondent Behavior

Behavior that is elicited by a prior stimulus without the need for learning, typically reflecting reflexive or involuntary responses.

Studying

The act of devoting time and attention to acquiring knowledge on an academic subject, especially by means of books.

Blushing

A physiological response characterized by the reddening of the face due to emotional states such as embarrassment, shame, or modesty.