A university decides to change its late night bus service between the campus and student housing from a fare-based service to a free service.This statement means that the incentive to ride the bus ________ and the opportunity cost of a bus ride ________.The university's decision is a ________ decision.
A)changes;decreases;microeconomic
B)changes;decreases;macroeconomic
C)remains the same;remains the same;macroeconomic
D)remains the same;remains the same;microeconomic
E)changes;increases;microeconomic

Question

Quizplus · Accepted Answer

When the university changes the late-night bus service from fare-based to free, the incentive to ride the bus increases as the cost of riding the bus decreases. This change in the incentive to ride the bus and the decrease in the opportunity cost of a bus ride are microeconomic issues. Therefore, the correct answer is A.

A University Decides to Change Its Late Night Bus Service