While Waiting in Line to Buy One Cheeseburger for $1

question 97

Multiple Choice

While waiting in line to buy one cheeseburger for $1.50 and a medium drink for $1.00, Sally notices that she could get a value meal that contains both the cheeseburger and medium drink and also a medium order of fries for $2.75. She thinks to herself, "Is it worth the extra 25 cents to get the medium fries?" To an economist, Sally's decision is an example of:

• A) marginal analysis.
• B) basing decisions on total, rather than marginal, value.
• C) an unintended consequence.
• D) the fallacy of composition.

---

Definitions:

Coordinated Unit

A group of individuals or departments working together in a structured manner to achieve a common goal.

Multiskilling

Is a state in which team members are each capable of performing many different jobs.

Social Facilitation Theory

The proposition that the presence of others can enhance an individual's performance on familiar tasks but may impair it on unfamiliar tasks.

Emotional Arousal

The process of stimulating emotions within an individual, ranging from intense feelings of happiness to severe instances of anger or fear.