Alex Received a Four­year Scholarship to State U

question 62

Multiple Choice

Alex received a four­year scholarship to State U.that covered tuition and fees, room and board, and books and supplies.If Alex becomes a full­time student, then:

• A)attending State U.for four years is costless for Alex.
• B)Alex has no incentive to study hard while at State U.
• C)the opportunity cost of attending State U.includes the money Alex could have earned working for four years.
• D)the opportunity cost of attending State U.includes the sum of the benefits Alex would had from attending each of the other schools to which he was admitteD.Even though Alex has no out­of­pocket costs, by attending State U Alex would be giving up on 4 years worth of earnings.

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Definitions:

Resources Allocation

It involves distributing available resources among various competing needs or projects in order to achieve desired objectives or optimize outcomes.

Paradox of Voting

The situation where the cost of voting (time, effort) exceeds the apparent personal benefits, yet people still vote.

Majority Voting

A decision-making process where the option that receives more than half of the votes is chosen.

Economic Efficiency

A level of performance in which no more goods or services can be produced without increasing the amount of inputs or resources used, indicating an optimal allocation of resources.