Barbie is deciding whether to play soccer or go swimming over the next hour.She decides to swim.Economists would conclude that Barbie:
A)is revealing a preference for swimming over soccer.
B)will get more utility from swimming during the next hour than playing soccer.
C)will always choose swimming over soccer,ceteris paribus.
D)All of these are true.

Question

Quizplus · Accepted Answer

All three statements are true. Barbie's decision to choose swimming over soccer reveals her preference for swimming, indicating that she derives more utility from swimming than playing soccer. However, it does not mean that she will always choose swimming over soccer in all situations; her decision may depend on factors such as her mood, location, availability of equipment, etc. Therefore, economists would infer that Barbie's choice is based on her current set of preferences and circumstances, but it does not determine her behavior in every situation.

Barbie Is Deciding Whether to Play Soccer or Go Swimming