Mitch Has $100 to Spend and Wants to Buy Either

question 188

Multiple Choice

Mitch has $100 to spend and wants to buy either a new amplifier for his guitar or a new mp3 player to listen to music while working out.Both the amplifier and the mp3 player cost $100,so he can only buy one.This illustrates the basic concept that

• A) trade can make everyone better off.
• B) people face trade-offs
• C) rational people think at the margin.
• D) people respond to incentives.

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Definitions:

Patent Applicant

The person or entity that files an application with a patent office for protection of an invention.

Useful

Having a practical or beneficial use.

Manufacturer's Trademark

A symbol, word, or phrase legally registered by a manufacturer to identify and distinguish its products from others.

Permission

The authorization granted to do something or use something that belongs to another party.