An Individual Would Willingly Give a Concert for $2,000

question 425

Multiple Choice

An individual would willingly give a concert for $2,000. If she is paid $5,000 for the concert, she is

• A) receiving $3,000 to cover her opportunity cost.
• B) not being paid her full opportunity cost.
• C) receiving $3,000 of economic rent.
• D) certainly being paid more than warranted by the level of demand.

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Definitions:

Punished

To subject someone to a penalty or consequence for a mistake or wrongdoing.

Consequences

Consequences refer to outcomes or effects that directly result from actions or conditions, often implying a reaction to what has been done or what has occurred.

Accomplish

To achieve or complete successfully a task, goal, or objective.

Chance

The occurrence of events without apparent cause, or the unpredictable and uncontrollable aspect of happenings.