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- 1 Answer the following questions: Your hard work was rewarded by a bonus payment of RMB 7000 from your employer. You decided to spend the entire RMB 7000 on buying a new Huawei cellphone although you have a less preferred option of going to Guangzhou for a short trip by spending RMB 5000. Is there an actual (explicit) cost of getting the Huawei phone? What is the opportunity cost concemned - RMB 0, RMB 5000 or RMB 7000? Explain your answer. [Hint: By explicit cost, consider if any money comes from your own pocket] If the decision to buy the cellphone remains valid, but there has been no bonus payment and you have to pay for the phone with your own money. Will the opportunity cost be different from your answer in part a.? Explain. You made a RMB 1000 deposit in your Piggy bank on getting a new iPhone priced at RMB 9000 (i.e. RMB 8000 has yet to be paid to get the phone) which you thought was totally worth it. Before completing the transaction, you came to realize that a new Huawei…In Figure 1.1, which of the following points would the opportunity cost of producing one more SUV be highest? Figure 1.1 Cupeto SVs a) A b) B c) C d) F Cipat of CanBased on the graph, what is the opportunity cost of moving from point B to point D? Baseballs 200 150 C. 100 50 %23 100 200 300 400 Bananas! Select one: Oa. 100 bananas and 50 baseballs Ob. 100 bananas and 100 baseballs Oc.50 baseballs d. 100 bananas e. none of the answers are correct
- 07. In figure C the shift of the Production Possibilities Frontier outward would be best explained by: A) an improvement in technology applicable to the production of both goods. B) an improvement in technology specific to product Y. C) an improvement in technology specific to product X. D) an increase in demand for both products. E) an increase in specialization of resources.Your opportunity cost of going to a movie isa. the price of the ticket.b. the price of the ticket plus the cost of any sodaand popcorn you buy at the theater.c. the total cash expenditure needed to go to themovie plus the value of your time.d. zero, as long as you enjoy the movie and considerit a worthwhile use of time and moneyProduction possibilities frontier is a combination of output that the economy can possibly produce as given available factor of production, production technology, efficiency and institutional arrangement Select one: O True O False
- Which is a good example of an opportunity cost? 1. “To begin, I began selling prints of my pictures in 2019 throughout 2020. It's now closed. USPS and UPS were the options I had during this period to ship out orders. UPS was expensive at the moment for smaller or lightweight packages whereas USPS offered a cheap price for these types of packages. UPS ships more than 220 internationally while USPS ships to certain international destinations. I have chosen USPS over UPS, orders were delivered on time and without damage by the United States Postal Service. The opportunity cost is the cost of UPS shipping. “ 2. “To begin, I began selling prints of my pictures in 2019 throughout 2020. USPS and UPS were the options I had during this period to ship out orders. I chose to ship my orders via UPS rather than USPS since it had the choice to ship orders internationally. While USPS is cheap and has fast shipping. Shipping the orders with UPS did not ship orders out on time, orders were damaged,…1.1 Factors of production A. are normative concepts. B. are studied primarily in microeconomics. C. represent the classification of different resources available to an economy. D. represent the trade-offs as you move along the demand curve. E. represent the trade-offs as you move along the isoquant curve. Use the following information to answer questions 1.2 to 1.4: Suppose the demand for a product can be represented by Qd = 100 - 5P, while the supply is given by the equation Qs = -12 + 3P, where price is in rand. 1.2 The equilibrium price for the product is the following: A. R6.67 В. R15 С. R5 D. R20 E. None of the above values. 1.3 At the equilibrium, the quantity is А. 45. В. 33. C. 18. D. 25. E. None of the above values.1.a Explain the economic link between scarcity, choice and opportunity cost. 1.b Suppose there are two countries (South Africa and Chile) producing two products(Capital goods and consumer goods) with production possibilities per person inSouth Africa lower than in Chile. Use the PPF to substantiate how the future growthof the two countries will change if South Africa devoted a lot of its resources toproducing capital goods today.
- Explain opportunity cost.what importance is opportunity cost to the(a) Individual;(b) Firm;(c) GovernmentWould the opportunity cost be a benefit to UPS shipping or a benefit to UPS international shipping for this example? “To begin, I began selling prints of my pictures in 2019 throughout 2020. It's now closed. USPS and UPS were the options I had during this period to ship out orders. Smaller or lighter packages were more expensive to ship with UPS, but USPS provided a low-cost alternative. UPS ships more than 220 internationally, whereas; USPS is strict about shipping to specific international destinations. I have chosen USPS over UPS; by doing this, orders were delivered on time and without damage by the United States Postal Service.”Consider production possibilities of goods and services in China, Since 1980, the population of China has grown by over 40%, from just under 1.0 billion to more than 1.4 billion people. In addition, there has been massive investment in both human and physical capital. Given these changes, we can expect that China's production possibilities frontier has shifted and become curved (bowed outward). Answers A - D A.outward; more B.inward, more C.inward; less D.outward, less