Question

School band members need to raise money for new uniforms. Some members want to sell energy drinks at a football game, but others want to organize a car wash in the school parking lot. Based on economics, what would be most influential in making the decision?
the labor needed
the consumer appeal
the capital needed
the value of the resources

Answer 1

The consumer appeal should be the decision driver, given that volume of sales will depend on the interest of the public and so the possibility to raise more funds.

Answer 2

The correct answer is D) the value of resources.

Based on economics, the most influential in making the decision is the value of resources.

If the School band members need funds for new uniforms and they are thinking on a car wash day or selling energy drinks in a football game in order to get the money they need, they must base their decision based on economics and the most influential aspect to do so is the value of the resources. This means that they need to consider the value of the ítem, products, or services they want to sell. In this case, the value of an energy drink and the price to be sold, versus the value of a car wash service. They have to analyze which of both has more value and is going to give them more benefits, in this case, income.