John has an economics test tomorrow. he must study and has planned the rest of his day so that he can fit some study time in. he has decided to go to the gym and then study for several hours. which of the following statements is true?
a) john's decision isn't related to the economic way of thinking because his decision on how to allocate his time did not involve money.
b) john's decision on how to allocate his time is inconsistent with the rationality assumption since he has decided to spend some time at the gym.
c) john's decision on how to allocate his time is consistent with the rationality assumption since the decision is intended to make him better off.
d) john would have been better off if he chose to study more.
Solved
Show answers
More tips
- A Auto and Moto How to Deregister a Car in Moscow?...
- F Food and Cooking How to Cook Julienne? Recipes and Tips...
- D Dating, Love, Relationships 10 Useful Tips on How to Survive a Breakup?...
- F Food and Cooking Apple Cider Vinegar: The Ultimate Health and Beauty Solution...
- C Computers and Internet Е-head: How it Simplifies Life for Users?...
- F Family and Home How to Choose the Best Diapers for Your Baby?...
- F Family and Home Parquet or laminate, which is better?...
- L Leisure and Entertainment How to Properly Wind Fishing Line onto a Reel?...
- L Leisure and Entertainment How to Make a Paper Boat in Simple Steps...
- T Travel and tourism Maldives Adventures: What is the Best Season to Visit the Luxurious Beaches?...
Answers on questions: Business
- B Business Word Lab Limited issues $200,000 of its 9% bonds at par on April 1,which is 4 months after the original issue date.How much interest should Mike collect from the...
- B Business with reference to relevant legislation , case law, and secondary sources briefly explain different functions of taxation...
- B Business Sheridan Company reported the following information for 2016: October November December Budgeted sales $880000 $780000 $900000 All sales are on credit. Customer...
- B Business 7. Suppose it takes $1.05 to buy one euro. What is the nominal exchange rate for the euro countries against the U.S. dollar...
- B Business A stock offers an expected dividend of $3.50, has a required return of 14%, and has historically exhibited a growth rate of 6%. Its current price is $35.00 and...
- B Business At the conclusion of the traditional sales comparison approach to valuation, the appraiser evaluates and reconciles the final adjusted sale prices into a single...
- B Business Menard quit his high school teaching job, which paid $60,000 per year, to start a business that prepares students for the SAT exam. His first year in business generated...
- B Business Organizational development would be most useful to this organization in terms of...
- B Business Schwab’s customers can assemble their own investment portfolios with its mutual fund evaluator tool, an example of...
- B Biology The is a layer of cells that surrounds an axon and helps to accelerate the transmission of information. a: soma b: nerve c: myelin sheath d: axon terminal...
Ответ:
C) John's decision on how to allocate his time is consistent with the rationality assumption since the decision is intended to make him better off.
Explanation:
One of the pillars of modern economic theory is that individuals are rational and they will try to maximize their benefit at the lowest possible cost. Since resources are finite, then all our decisions are made on the margin. What is the marginal benefit that we can obtain from purchasing something at its marginal cost (marginal cost = sales price for an individual).
In this case, John is trying to maximize his utility, first he will go to the gym which probably provides a larger benefit to him, and then he is going to study (which also provides a benefit). He could have chosen to either go out to somewhere else or just stayed home and watch TV, play videogames, etc., but apparently these activities do not provide him enough benefits but represent a large cost in time.
Ответ: