Question

While waiting in line to buy one cheeseburger for $1.50 and a medium drink for $1.00, Sally notices that she could get a value meal that contains both the cheeseburger and medium drink and also a medium order of fries for $2.75. She thinks to herself, "Is it worth the extra 25 cents to get the medium fries?" To an economist, Sally's decision is an example of: O a. basing decisions on total, rather than marginal, value. O b. an unintended consequence. O c. the fallacy of composition. O d. marginal analysis.

Answer 1

Ouest The correct option is a marginal Analysis because, Sally will compare the Utility Level from Initial Bundle in which she in consuming only cheese - begel and medium drink with that of meal. If her utility Increases by spending additional .as couts, the will buy the combo otherwise not Hence @ is correct Quesa Option © is correct as when econany is producing at feelf employment then economy is peco ducing aloing its PPC. Ques 3 option C is correct A PPC graph slopes down because of dowlof Tecreas scarcity. This is because we have limited Resources and we have to make a choice on how much to Allo cafe in production of each good.

If you producing more off goodse) you have to have seasitice more and more onit of good y As a result, PPC Ý Concave and downward in shape