Question

From an economic perspective, a student’s decision to go to the movies instead of studying for a test indicates that in the student’s thinking the marginal r
A. benefit of studying is greater than the marginal cost of studying.
B. cost of going to the movies is less than the marginal benefit of going to the movies.
C. benefit of studying is greater than the marginal benefit of going to the movies.
D. cost of going to the movies is greater than the marginal cost of studying.

Answer 1

Answer:

It  means that the  marginal cost of going to the movies is less than the marginal benefit of going to the movies.

Explanation:

If the student chooses to go to the movies, it means that he thinks he has less to lose when he foregoes studying for a test. Even though logically it may appear that the latter would be a better option, according to him, the 2 or so hours at the movies would provide an extra value like if he went with a family member who he cares about. That probably beats the cost of staying up late to revise for the test.