Question
A student is sitting in class studying, thinking about the things she could currently be doing instead which include: Working at the supermarket for $20/hr;
A student is sitting in class studying, thinking about the things she could currently be doing instead which include:
Working at the supermarket for $20/hr;
Working as a babysitter for $15/hr;
Going to the gym which she values at $5/hr.
Spending time with one of her boyfriends on a date which she values at $2/hr;
Any one of these activities can be done at the current time. The student is an economic rationalist who makes optimal decisions. Which of the following statements is NOT correct?
Select one:
a. The fact that she is studying in class means that her minimum valuation of class time must be $20/hr.
b. The opportunity cost of studying in class is $20/hr.
c. The opportunity cost of working at the supermarket is at least $20/hr.
d. The opportunity cost of babysitting is $20/hr.
e. If one of her boyfriends sends her a message to immediately leave class and meet up for a surprise date, she should logically say no.
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