Nara has gone to three movies this week. She has some extra money, so she decides to go to another. This statement best represents this economic concept:
A)Resources are scarce.
B)The real cost of something is what you must give up to get it.
C)"How much" is a decision at the margin.
D)There are gains from trade.

Question

Quizplus · Accepted Answer

The statement "Nara has some extra money, so she decides to go to another movie" best represents the economic concept of "how much" as a decision at the margin. Nara is making a decision about whether or not to see another movie based on the additional benefit she will receive from seeing that movie, weighed against the additional cost of seeing it (in terms of both money and time). This is an example of decision-making at the margin, where we consider the incremental costs and benefits of each additional unit of a good or service.

Nara Has Gone to Three Movies This Week