Nara has gone to three movies this week.She has some extra money,so she decides to go to another.Which economic principle does this statement BEST represent?
A)Choices are necessary because resources are scarce.
B)The true cost of something is its opportunity cost.
C)"How much" is a decision at the margin.
D)There are gains from trade.

Question

Quizplus · Accepted Answer

The statement "she decides to go to another" implies that Nara is making a decision at the margin, or weighing the cost and benefit of going to another movie. She has some extra money, so she is likely considering the additional benefit of seeing another movie compared to the additional cost. Therefore, the economic principle that best represents this statement is "how much" is a decision at the margin.

Nara Has Gone to Three Movies This Week