Which of the following is most consistent with economizing behavior?
A) If you get the same satisfaction from a hamburger and a fish sandwich, you should purchase the one that costs the most.
B) Even if you know how to paint, hiring someone to do the job is consistent with economizing behavior, if your opportunity cost is high enough.
C) If the government provides a good free to citizens, the opportunity cost of the good is zero.
D) If you get the same satisfaction from going to the opera and going to an art museum, it makes no difference which you choose.

Question

Quizplus · Accepted Answer

Economizing behavior involves making choices that maximize satisfaction while minimizing costs. In this case, hiring someone to paint is consistent with economizing behavior if the opportunity cost of doing the job yourself (the value of the time you could spend on other activities) is high enough.

Which of the Following Is Most Consistent with Economizing Behavior