Mitch Has $100 to Spend and Wants to Buy Either

question 188

Multiple Choice

Mitch has $100 to spend and wants to buy either a new amplifier for his guitar or a new mp3 player to listen to music while working out.Both the amplifier and the mp3 player cost $100,so he can only buy one.This illustrates the basic concept that

• A) trade can make everyone better off.
• B) people face trade-offs
• C) rational people think at the margin.
• D) people respond to incentives.

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Definitions:

Cataracts

A medical condition where the lens of the eye becomes progressively opaque, leading to blurred vision.

Sunlight

The natural light emitted by the sun, which is essential for the survival of many organisms and influences Earth’s climate.

Diabetes

A disease marked by high levels of blood glucose that occurs when the body is unable to regulate the amount of glucose in the bloodstream because there is not enough insulin produced (type 1 diabetes) or the body shows insulin resistance and becomes less sensitive to it, failing to respond to it (type 2 diabetes); symptoms include fatigue, great thirst, blurred vision, frequent infections, and slow healing.

Carbon Monoxide

A colorless, odorless, and toxic gas produced by incomplete combustion, capable of causing serious health issues or death.