Question

Jamie must decide whether to buy a new truck. He concludes the costs of buying the truck are greater than the benefits. In Jamie’s case, buying the truck would be ____.

a rational economic decision


an opportunity cost


a productive choice


an irrational economic decision




Using the concepts of marginal analysis, what decision would you make when marginal benefit is less than the marginal cost?



produce more output


decrease production


close the business because it is now making losses


do not produce the additional unit


Carrie has to decide between going to a football game or going to the movies. She decides to go the football game. Which of the following is her opportunity cost?



Missing the opportunity to go to the movies.


The opportunity to see her friends at the football game.


The cost of popcorn at the movies.


The cost of the football game ticket.

Answer 1

an opportunity cost B.

Answer 2

1. an irrational economic decision

2. Missing the opportunity to go to the movies.