People Make Mistakes in Allocating Their Time

question 56

Multiple Choice

People make mistakes in allocating their time

• A)only when leisure time is an inferior good
• B)because expectations are not always fulfilled
• C)more often when the cost of making a mistake is high
• D)only when economists remove the assumption that individuals are rational
• E)because information is free and readily available

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Definitions:

Productive Workers

Individuals who efficiently produce goods or services, contributing to the overall output of a business or economy.

Marginal Expenditure

The additional cost incurred from purchasing or producing one more unit of a good or service.

Average Expenditure

The average amount of money spent by consumers or firms on a particular good or service.

Monopsony

A market condition where there is only one buyer for many sellers, giving the buyer significant power over prices.