Michael is a college student. He can either buy a textbook for $100 or save up for a road trip he wants to take during the summer. This illustrates the principle that a. rational people think at the margin. b. people respond to incentives. c. trade can make everyone better off. d. people face trade-offs.

Question

Social Studies

Memphis Escobar

22 February, 19:08

Michael is a college student. He can either buy a textbook for $100 or save up for a road trip he wants to take during the summer. This illustrates the principle that a. rational people think at the margin. b. people respond to incentives. c. trade can make everyone better off. d. people face trade-offs.

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Answers (2)

Know the Answer?

Hayden Ware · Answer 1

Hayden Ware 22 February, 20:19

0

D. People face trade-offs

Konner Franco · Answer 2

Rational people think at the margin.

Explanation:

Michael is demonstrating a rational behaviour, because he's trying to make a choice between a necessity and vanity.

So, this thinking process talks about he's ability to rationalise between options.