Question

When most economists wake up in the morning, their first decision is whether or not to his the snooze button on the alarm clock.

A) I had a really late night grading exams, and I deserve 10 more minutes of sleep.

B) The total amount of work I have to do today is rather small, so the total benefit to going to work for a full 8 hours is also small.

C) The total amount of work I have to do today is rather small, so the marginal cost of going to work 10 minutes late is small.

D) The total amount of work I have today is rather small, so the marginal benefit of sleeping 10 more minutes is rather large,

E) The marginal benefit of sleeping 10 more minutes is greater than the marginal benefit of 10 more minutes of work.

Answer 1

The correct answer is letter "E": The marginal benefit of sleeping 10 more minutes is greater than the marginal benefit of 10 more minutes of work.

Step-by-step explanation:

Marginal Benefit is an economic term that describes the maximum amount a consumer is willing to pay for an additional unit of a good or service. Typically, the marginal benefit decreases as long as the person consumes more of that good or service. The price-benefit relationship is inversely proportional.

In the example, the marginal benefit of sleeping 10 minutes more must be greater than the marginal benefit of working 10 more minutes if economists choose to sleep a little bit more.