Carol Says the Following to an Economist: "I Hate Playing

question 96

Multiple Choice

Carol says the following to an economist: "I hate playing the guitar, but I have taken lessons for 10 years, so I might as well continue. There is a chance I will become a professional guitarist one day." An economist would probably make which of the following statements?

• A)In a world of scarcity and unhappy alternatives, guitar playing may be your best bet.
• B)You're right; it is better not to let all that time, energy, and money on guitar lessons go to waste.That would be uneconomical and irrational.
• C)The music made by a guitar is nice; maybe you should stay with it, you may come to like it.
• D)The cost you have incurred for guitar lessons is sunk.You should not allow something that can't be undone to influence a current decision.

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Definitions:

Wage Earnings

Income received by an individual in return for labor or services performed, usually calculated on an hourly, daily, or piecework basis.

Remittances

Money sent by migrants to their home country or region, usually to family members, contributing significantly to the economy of the recipient area.

Industrial Nations

Countries that have a developed industrial base and a significant level of economic activity in the manufacturing sector.

Developing Nations

Countries with a lower standard of living, underdeveloped industrial base, and lower Human Development Index relative to other countries.