Question

1. scarcity, opportunity cost, and marginal analysis

alyssa is training for a biathlon, a winter racing sport that combines cross - country skiing and rifle shooting.
consider the following scenario: because her ski training sessions are helping her quickly improve at skiing, alyssa plans to reduce the time she spends training at the shooting range by an hour, and increase the time she spends skiing by an hour. however, her training partner says that she should pause all shooting practice and spend the entire 15 hours this week in the pool.
which basic principle of individual choice does alyssas plan illustrate that her training partners advice does not?
○ all costs are opportunity costs.
○ resources are scarce.
○ many decisions are made on the margin.
○ people usually exploit opportunities to make themselves better off.

Explanation:

• Analyze each option:
• "All costs are opportunity costs": Alyssa's plan doesn't focus on opportunity cost in a way that differentiates from the partner here.
• "Resources are scarce": Both plans relate to time (a resource), but this isn't the key difference.
• "Many decisions are made on the margin": Alyssa adjusts training time by 1 hour (marginal change), while the partner suggests a total shift (non - marginal). This matches the scenario.
• "People usually exploit opportunities...": Both plans aim to improve, so this isn't the differentiator.

Answer:

C. Many decisions are made on the margin.