Which of the Following Scenarios Describes an Action That Is

question 280

Multiple Choice

Which of the following scenarios describes an action that is not rational from an economic point of view?

• A) After drinking one martini (shaken, not stirred), James buys and drinks a second martini even though the marginal benefit of the second martini is lower than the marginal benefit of the first.
• B) Eric buys a replacement ticket to the basketball game after he realizes that he accidentally left his original ticket at home.
• C) Emily chooses to attend a social event on Tuesday night instead of studying even though she has an important exam on Wednesday morning.
• D) US Airways sells a last minute ticket to Don for $50 even though its average cost per passenger is $250.
• E) None of the above

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Definitions:

Medicare

A federal health insurance program in the United States primarily for people aged 65 and older, as well as for some younger people with disabilities.

Medicaid

A social health care program for families and individuals with low income and resources.

Medicare

A federal program providing health insurance to people over 65 and to certain younger people with disabilities, funded by payroll taxes, premiums, and the federal government.

Baby Boom Generation

Refers to the demographic cohort born approximately between 1946 and 1964, experiencing a marked increase in birth rates post-World War II.