Question

Candice is planning her activities for a hot summer day. She would like to go to the local swimming pool and see the latest blockbuster movie, but because she can only get tickets to the movie for the same time that the pool is open she can only choose one activity. This illustrates the basic principle that
Select one:

a.improvements in efficiency sometimes come at the expense of equality.
b.people face tradeoffs.
c.rational people think at the margin.
d.people respond to incentives.

Answer 1

Answer:

b.people face tradeoffs.

Explanation:

Candice is planning her activities for a hot summer day. She would like to go to the local swimming pool and see the latest blockbuster movie, but because she can only get tickets to the movie for the same time that the pool is open she can only choose one activity. This illustrates the basic principle that people face tradeoffs. Individuals have to strike a balance between two desirable features, they often have to make a compromise. Candice will have to make a compromise between going to the pool or seeing the movie.