When most economists wake up in the morning,their first decision is whether to hit the snooze bar on the alarm clock.What statement best represents their thought process as rational decision makers?
A) Sal had a really late night grading exams,and he deserves 10 more minutes of sleep.
B) The total amount of work Sal has to do today is rather small,so the total benefit to going to work for a full eight hours is also small.
C) The total amount of work Sal has to do today is rather small,so the marginal cost of going to work 10 minutes late is small.
D) The total amount of work Sal has to do today is rather small,so the marginal benefit of sleeping 10 more minutes is rather large.
E) The marginal benefit of sleeping 10 more minutes is greater than the marginal benefit of 10 more minutes of work.

Question

Quizplus · Accepted Answer

Economists think in terms of marginal analysis, comparing the marginal benefit of an action to its marginal cost. Choice E directly addresses this by comparing the marginal benefits of sleeping 10 more minutes to working 10 more minutes, which is a fundamental aspect of rational decision-making in economics.

When Most Economists Wake Up in the Morning,their First Decision