Will,Bill,and Phil Decide to Study an Extra Hour for an Exam.Instead

question 42

Multiple Choice

Will,Bill,and Phil decide to study an extra hour for an exam.Instead of studying,they could have gone out to eat,played football,or watched TV.Which of the following statements is correct?

• A) The benefit the three students receive must be the same because they all make the same choice.
• B) The students made a rational choice as long as they face no scarcity.
• C) The students could each have different opportunity costs.
• D) The marginal cost of the decision is the same if they make the same score on the exam.
• E) Going out to eat, playing football, and watching TV are all called sunk costs.

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Definitions:

Agricultural Policies

Regulations and strategies implemented by governments to control the agricultural sector's market, aiming to stabilize prices, ensure a stable food supply, and protect agricultural incomes.

Criticisms

The expression of disapproval based on perceived faults or mistakes, or the analysis and judgment of merits and faults.

Inelastic Demand

A situation where the demand for a good or service is relatively insensitive to changes in price, meaning that percentage changes in price lead to smaller percentage changes in the quantity demanded.

Substitution Effect

The substitution effect occurs when consumers replace more expensive items with less costly alternatives as prices change.