Going Skiing Will Cost Adam $80 a Day

question 49

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. Adam still decides to go skiing.

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

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Definitions:

Infant Monkeys

Young primates that are in the earliest stage of their lives, often studied to understand developmental behaviors.

Cloth-covered Mother

In developmental psychology, a reference to the surrogate mother experiments by Harry Harlow, which demonstrated the importance of comfort and security in infant-mother bonding.

Frightened

A feeling of fear or anxiety, often induced by a perceived threat.

Emotional Bonds

Strong feelings of connection and attachment that develop between individuals, often based on shared experiences, affection, and trust.