Going Skiing Will Cost Adam $80 a Day

question 8

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. Yet, Adam still decides to go skiing.

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

---

Definitions:

Input of Energy

The introduction or absorption of energy into a system or process to initiate or drive reactions.

Free Energy

A thermodynamic quantity equivalent to the capacity of a system to do work, often used in biochemical and metabolic contexts.

Metabolic Energy

The energy that is produced and used by the cells during metabolic processes, necessary for maintaining the body's functions, such as muscle contractions and temperature regulation.

Potential Energy

The stored energy in an object or system due to its position or configuration.