Hamid spends an hour studying instead of watching TV with his friends. The opportunity cost to him of studying is
a. the improvement in his grades from studying for the hour.
b. the improvement in his grades from studying minus the enjoyment of watching TV.
c. the enjoyment he would have received if he had watched TV with his friends.
d. zero. Since Hamid chose to study rather than to watch TV, the value of studying must have been greater to him than the value of watching TV.
c
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Rainbow trout has the shortest fishing season, which causes a rapid decrease in its population. To prevent the extinction of the trout, the government initially imposed a quota on the total amount of fish caught. The quota was imposed on the fishing of rainbow trout to prevent _____
a. the free rider problem b. the tragedy of the commons c. asymmetric information d. deadweight loss
Some pet owners are using an "invisible fence" to keep their animals from straying. Every time the animal steps over the edge of the property, it gets a mild shock. A social scientist would call the shock
A) a price signal. B) a reward. C) a disincentive. D) a normative incentive.