Solved Questions

Studying has both costs and benefits. If you continue to study (e.g., for a test) for as long as the marginal benefits of studying are greater than the marginal costs, and you stop studying when the two are equal, will your action be consistent with having maximized the net benefits of studying? Explain your answer.

Give an example to illustrate how a change in opportunity cost can affect behavior.

How does choice arise out of scarcity?

How does competition arise out of scarcity?

True or false? Scarcity is the condition of finite resources. Explain your answer.