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MMLU / Nancy has the choice to spend one hour studying for an exam, mowing the lawn for…

Problem

Answer published by the source. Consult the official source to check your work against its answer.

question

Nancy has the choice to spend one hour studying for an exam, mowing the lawn for one hour at a wage of 6,orbabysittinghernieceforonehouratawageof6, or babysitting her niece for one hour at a wage of 8. If we know that Nancy has chosen to study for the exam, which of the following is true?
Plain-text mathematical notation (without MathML)
Nancy has the choice to spend one hour studying for an exam, mowing the lawn for one hour at a wage of 6,orbabysittinghernieceforonehouratawageof8. If we know that Nancy has chosen to study for the exam, which of the following is true?
Original LaTeX notation
Nancy has the choice to spend one hour studying for an exam, mowing the lawn for one hour at a wage of $6, or babysitting her niece for one hour at a wage of $8. If we know that Nancy has chosen to study for the exam, which of the following is true?

choices

  1. The benefit received from studying is greater than the opportunity cost of $8.
  2. The opportunity cost of studying is $14, which is less than the benefit received from studying.
  3. Nancy is indifferent to both studying and mowing the lawn.
  4. Nancy's behavior is irrational, since babysitting was clearly superior to all other options.

subject

high_school_microeconomics

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