Will,Bill,and Phil Decide to Study an Extra Hour for an Exam.Instead

question 42

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

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Definitions:

Gold Standard

An economic system where a fixed amount of gold serves as the standard unit of currency.

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Legislation that governs the operation of banks and other financial institutions, including regulations on lending, deposit taking, and investments.

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