Just before class, Jim tells Stuart, "Stuart, you shouldn't skip class today because you have paid tuition to enroll in the class." Stuart ignores Jim's advice, and instead makes the decision of whether to attend based on what he feels he'd be missing that day in class relative to his value of the extra time he could have to finish the video game he is playing. To an economist, Stuart is
A) using marginal decision making.
B) ignoring the total value of attending class.
C) ignoring the concept of opportunity cost.
D) committing the fallacy of composition.

Question

Quizplus · Accepted Answer

Stuart is using marginal decision making by considering the additional value he would receive from attending class versus the additional value he would receive from playing his video game. He is weighing the marginal benefits and costs of each option to make his decision.

Just Before Class, Jim Tells Stuart, "Stuart, You Shouldn't Skip