If individuals are rational, they should choose actions that yield the（）
A. smallest economic surplus
B. smallest total costs
C. largest total benefits
D. largest economic surplus
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Jody has purchased a non-refundable $75 ticket to attend a Miley Cyrus concert on Friday night. Subsequently, she is asked to go to out dinner at no expense to her. If she uses cost-benefit analysis t
A. only the cost of concert ticket
B. neither the cost of the ticket nor the entertainment value of the concert
C. only the entertainment value of the concert
D. the cost of the ticket plus the entertainment value of the concert
If all the world’s resources were to magically increase one hundredfold, then（）
A. people would still have to make trade-offs
B. trade-offs would become unnecessary
C. economics would no longer be relevant
D. scarcity would disappear
Tony notes that an electronics store is offering a flat $20 off all prices in the store. Tony reasons that if he wants to buy something with a price of $50, then it is a good offer, but if he wants to
A. the proper application of the Cost-Benefit Principle
B. inconsistent reasoning; saving $20 is saving $20
C. rational choice because saving 40% is better than saving 4%
D. inconsistent reasoning because prices are sunk costs
Pat can either drive to work, which takes half an hour and uses $1.50 worth of gas, or take the bus, which takes an hour and costs $1.00. How should Pat get to work（）
A. Pat should drive because it saves half an hour relative to taking the bus
B. Pat should drive if saving half an hour is worth $0.50 or more
C. Pat should take the bus if saving half an hour is worth $0.50 or more
D. Pat should take the bus because it costs $0.50 less than driving
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