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:

Time Management

The practice of organizing and planning how much time to spend on specific activities.

Productivity

A measure of the efficiency of a person, machine, system, etc., in converting inputs into useful outputs.

Soft Drink Bottling

The process of preparing and packaging soft drink beverages for distribution and sale, often involving carbonation, flavoring, and sealing in containers.

Paired-Difference Experiment

Another description for a study design where two observations (treatments or conditions) applied to the same subjects are compared to evaluate their difference.