Will, Bill, and Phil Decide to Study an Extra Hour

question 13

Multiple Choice

Will, Bill, and Phil decide to study an extra hour for an exam. Instead of studying, they could have gone out to eat, played football, or watched TV. Which of the following statements is correct?

• A)Going out to eat, playing football, and watching TV are all called sunk costs.
• B)The students made a rational choice as long as they face no scarcity.
• C)The marginal cost of the decision is the same if they make the same score on the exam.
• D)The benefit the three students receive must be the same because they all make the same choice.
• E)The students could each have different opportunity costs.

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Definitions:

Driving Force

An element or factor that propels or motivates individuals or groups towards a particular direction or goal.

Restrictive Force

Factors or influences that limit capabilities, freedoms, or the scope of action.

T-Groups

Training groups designed to help participants improve interpersonal skills, group dynamics, and self-awareness through unstructured group interaction.

Process Consultation

A method used by consultants to help an organization improve its internal processes and dynamics through participatory methods.