John has an economics test tomorrow. He must study and has planned the rest of his day so that he can fit some study time in. He has decided to go to the gym and then study for several hours. Which of the following statements is TRUE?
A)John did not use the economic way of thinking because his decision on how to allocate his time did not involve money.
B)John's decision on how to allocate his time is inconsistent with the rationality assumption since he has decided to go to the gym.
C)John's decision on how to allocate his time is consistent with the rationality assumption since the decision is intended to make him better off.
D)John's decision does not involve his pursuit of self-interest.

Question

Quizplus · Accepted Answer

John's decision to allocate his time between going to the gym and studying for his economics test is consistent with the rationality assumption since the decision is intended to make him better off. The decision is based on his objective of doing well on the test, which ultimately benefits him. Even though his decision does not involve money, it is still a rational decision based on his preferences and goals. Going to the gym may also improve his overall well-being, which can have a positive impact on his ability to study effectively. Therefore, John's decision reflects the economic way of thinking by considering the opportunity cost of his time and making a rational decision to maximize his overall well-being.

John Has an Economics Test Tomorrow