Alan Is a Retired Economist Who Enjoys Building Toy Trains

question 99

Multiple Choice

Alan is a retired economist who enjoys building toy trains for his grandkids. He uses a workbench and tools from his garage, lumber he bought from the lumber store for $10, and varnish and paint he had left over from another project last year. Since a retired economist is always an economist, which of the following statements is he likely to make about building toy trains?

• A) I'm not paying for any resources, so the toy trains I'm building are a good example of free goods.
• B) I only paid $10 for the lumber, so the toy trains I'm building are a good example of free goods.
• C) I'm using scarce resources to build the toy trains.
• D) The resources I'm using to build the toy trains are not scarce.
• E) If I had used lumber that I cut from the tree in my backyard instead of buying it from the store, then the toy trains I'm building would be a good example of free goods.

---

Definitions:

UPS

UPS stands for Uninterruptible Power Supply, a device that provides emergency power to a load when the input power source, typically mains power, fails.

Line Conditioner

A device that protects a computer from overvoltage and undervoltage conditions as well as adverse noise conditions. Also known as a power conditioner.

Surge Protector

A device that shields electronic equipment from voltage spikes by limiting the amount of voltage to a safe threshold.

E-Mail Password

A secret alphanumeric phrase used to secure access to an email account.