The Students' Union on Campus Provides Free Popcorn to All

question 101

Multiple Choice

The Students' Union on campus provides free popcorn to all students who attend their annual meeting. In this instance, how will the principle of scarcity apply?

• A) It will only apply to students who miss class to attend.
• B) It will apply in terms of the time given up to attend.
• C) It will not apply because the popcorn is free.
• D) It will not apply because no tradeoffs are involved.

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Definitions:

Equilibrium

A state in a market where supply equals demand, with no external forces causing disruption, hence prices tend to stabilize.

Labor Supply

The cumulative hours that workforce members are eager and able to dedicate to work, provided a set wage.

Marginal Productivity

The additional output resulting from the use of one more unit of a production factor.

Wages

Payments made to labor for their services, typically expressed per hour or per annum.