Moe Divides His Time Between Studying Physics and Studying Economics

question 56

Multiple Choice

Moe divides his time between studying Physics and studying Economics.He has discovered that he can earn grades as shown on this production possibilities curve.
Refer to the figure above.Which of the following is evidence that the low-hanging fruit principle applies to Moe's study habits?

• A)Earning the first 65 points in economics has a lower opportunity cost than earning the ten points that moves his score from 90 to 100 in economics.
• B)Physics is easier to grasp than economics,so it is the "low-hanging fruit" for Moe.
• C)Economics is easier to grasp than physics,so it is the "low-hanging fruit" for Moe.
• D)The low-hanging fruit principle applies only to production of goods and services,not to grades.

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Definitions:

Venture Capital

A form of private equity financing provided by investors to startups and small businesses with strong growth potential in exchange for equity, or an ownership stake.

High-risk Project

A project that carries a greater-than-average chance of failing to meet its goals or losing the invested capital due to various uncertainties.

Start-up Firm

A newly established business, often in the early stages of development, focusing on a unique product or service offering in the market.

Market Price

The price in the marketplace at which an asset or service can currently be bought or sold.