In allocating time between studying French and studying economics,
A)exam points are inferior goods
B)we can think of students "buying" exam points with hours spent studying
C)we can think of students "buying" exam points with money
D)the demand curve for exam points is upward sloping
E)we can think of students "buying" study time for cash

Question

Quizplus · Accepted Answer

By thinking of students "buying" exam points with hours spent studying, we can use the concept of opportunity cost to determine how much time a student should spend on each subject to maximize their exam points. The more time spent studying, the higher the potential exam points, but there is a diminishing marginal return to studying. Therefore, a student should allocate their time between the two subjects in a way that maximizes their overall exam points, which can be thought of as the "purchase" made with their time.

In Allocating Time Between Studying French and Studying Economics