Final answer:
Katy has scarcity of time and must decide how to allocate three hours of study between two subjects. The opportunity cost of studying for one is the potential grade in the other. Her choice should depend on her priorities and the importance of each test.
Step-by-step explanation:
In the scenario provided, time is the scarce resource. Katy faces the economic problem of scarcity, which requires her to make a choice on how to allocate her limited time to study for two different tests. According to the information given, splitting her time evenly between the two subjects will result in a C grade for both economics and forensic science, dedicating all her time to economics would yield an A in economics but an F in forensic science, and allocating all of her time to forensic science would lead to a B in forensic science and an F in economics.
When examining Katy's dilemma through the lens of economics, it becomes apparent that every choice involves tradeoffs, and every choice has a cost, known as opportunity cost. The opportunity cost is the value of the next best alternative that is forgone when making a decision. In Katy's case, if she chooses to study for economics, the opportunity cost is the B grade she could have earned in forensic science. Conversely, if she decides to study for forensic science, the opportunity cost is the A grade she might have received in economics.
What choice should Katy make? That depends on her personal priorities and the consequences of each potential grade in her courses. If both subjects are equally important, she might choose to split her time to avoid failing either. However, if one course is a prerequisite or more critical for her future career, she might choose to allocate more time to that subject.