Q: Based on the photograph of the question 2 section. if the economy is currently producing 10 bags of…
A: Opportunity cost is the forgone benefit which could have been earned by applying all the resources…
Q: The opportunity cost of oranges in terms of apples indicates how many oranges must be given up to…
A: Opportunity cost refers to value of next best alternative. It is the decrease in quantity of one…
Q: The diagram below shows a country’s production possibilities curve. Two outputs are possible,…
A: Here, the given graph shows the production possibilities curve with two goods, capital good and…
Q: Economic analysis is limited in its ability to forecast precise choices of a given individual…
A: Economic analysis refers to the observation and understanding of the given data to get relevant…
Q: You were planning to spend Saturday working at your part-time job, but a friend asks you to go to…
A: Opportunity costs are incurred when a person, an investor, or an organisation chooses one…
Q: By using consumer choice theory, explain why diamonds, which are not necessary to sustain life, are…
A: Paradox of Value:The paradox of value refers to the condition where the price of an essential…
Q: You have the evening free. You have a choice between going to a concert with a friend or studying…
A: The opportunity cost is called the next best alternative that is given up. In other words, the…
Q: Generally, opportunity costs increase and the production possibilities curve bows outward. Why?
A: The production possibility curve is the locus of different combinations of two goods that an economy…
Q: You own a building that has two possible uses: a grocery store, and a clothing store. The value of…
A: value of Grocery store = $7000 value of clothing store = $10,000 Opportunity cost = Return on best…
Q: What is an real-life example of a opportunity cost?
A: Opportunity cost: - opportunity cost is a forgone benefit which we could have earned by applying all…
Q: Which of the following happens to us because of scarcity? Question 2 options: We…
A: Scarcity refers that the shortage which is the core problem in the economy , which means that unable…
Q: Which of the following are statements illustrate opportunity cost? Select ONLY THOSE THAT APPLY.…
A: "Opportunity cost refers to what is sacrificed when the other thing is chosen over another."
Q: What does the slope of a curve between two points have to do with the opportunity cost of producing…
A: Opportunity cost of producing additional units of one good is the quantity given up of the other…
Q: Suppose there are only two people in the world. Each person’s production possibilities frontier also…
A: Suppose there are only 2 people in the world.Each person's production possibilities frontier also…
Q: Consider your decision whether to go skiing for the weekend. Suppose transportation, lift tickets,…
A: Opportunity cost is the value of the best alternative or we can say the gain from the best…
Q: What is an Opportunity Cost in economics? Answer by giving an example.
A: Opportunity costs are the cost that represents the potential advantages an individual, investor, or…
Q: use of chemical fertilizers, which increases agricultural production greatly, damages water quality…
A: Production possibility curve (PPC) shows combination of two goods that are in fact choices that are…
Q: Which of the following is illustrated by a production possibilities curve that is "bowed out" or…
A: The production possibility curve can be understood as a model that shows the trade-off in which we…
Q: Which of the following is a question answered with normative economic reasoning? O If the college…
A: Positive economic statements: A positive economic statement is based on empirical data and facts,…
Q: What is the Opportunity cost to this student for the additional amount of study time on economics…
A: The opportunity cost refers to the opportunity that has been foregone to select the best…
Q: Like a good economist, you calculated the opportunity cost of getting your college degree. Suppose…
A: Opportunity cost is the cost which the person has to bear because of making a choice. It includes…
Q: Define opportunity cost. What is your opportunity cost for attending a class at 11:00 am? How does…
A: The potential gains that a person, investor, or organisation loses out on when choosing one choice…
Q: Tonight, you and your friends are planning to see Black Panther for which you have a $4 off coupon.…
A: Opportunity costs are represented by the potential advantages an individual, investor, or business…
Q: Given a production possibilities curve for investment goods and consumption goods, which of the…
A: The "production possibility frontier" (PPF) depicts the various products and services that can be…
Q: Which of the following is NOT part of the opportunity cost of attending university? A) The…
A: Opportunity cost is defined as the benefit an individual or business misses while choosing some…
Q: Suppose there is rovement in medical technology that enables more healthcare with the same amount of…
A: The PPC is the production possibility curve which illustrates the different combinations of two…
Q: Economics is all about trade offs. What is the opportunity cost for a typical student pursuing a…
A: According to Adam Smith, economics is defined as “an inquiry into the nature and causes of the…
Q: You own a building that has two possible uses: a grocery store, and a clothing store. The value of…
A: The Opportunity cost to a firm in using any input is what the input could earn in its best…
Q: Suppose your friend ask you to go watching a movie while you are studying for an examination. what…
A: Answer: Opportunity cost is the cost that arises due to the sacrifice of the benefit that could have…
Q: In looking at the diagram above, if the consumer has an income of $40, then the absolute price of a…
A: Income = 40
Q: Suppose a nation has a total of 12 units of labor, which can be used to produce either guns or…
A: Given Total labor = 12 units Labor required to produce 1 gun = 6 units Labor required to produce 1…
Q: The opportunity cost of moving from point E to point B in the picture is what ?
A: The principle of comparative advantage is developed by David Ricardo and according to this concept,…
Q: Suppose you spend five hours studying for your final exam. In the first hour, you manage to review…
A: Factors of production are very significant in the establishment of relationship between input and…
Q: Because of scarcity, for every choice we make, there will always be opportunity costs. What does…
A: Every choice that we make means that we select one alternative over another. The selection of among…
Q: If you must make a choice about consuming two apples, three oranges, or one candy bar, the…
A: Answer : two appled or three oranges which ever you most prefer.
Q: If a family spends its entire budget in a given time frame, the family can afford either 95 cans of…
A: Opportunity cost is the second best alternative cost. Also Opportunity cost is the summation of…
Q: If the production of computers increases from point P to point S, what is the opportunity cost in…
A: Opportunity cost is the loss of potential increase from different options when one option is picked.
Q: Suppose Alphonso’s town raises the price of bus tickets from $0.50 to $1 and the price of burgers…
A: Given pieces of information: Previous price of bus tickets = 0.5 New price of bus tickets = 1…
Q: The production possibilities curve illustrates the basic principle that: Question 70 options:…
A: if all the resources of an economy are fully used, more of one item could be produced only if less…
Q: Evidence accumulates that the use of fertilizers, which increases agricultural production greatly,…
A: As it is said, more the use of chemical fertilizers, more there would be agricultural production and…
Q: Which statement concerning a production possibilities curve is not true? a. it is usally linear b.…
A: The production possibility curve represents graphically all the production possibilities of two…
Q: Maria can read 20 pages of economics in an hour. She can also read 50 pages of sociology in an hour.…
A: Opportunity cost is nothing but the cost of the next best alternative or the amount sacrificed to…
Q: What is the opportunity cost of going to a movie? the price of the ticket the price of the ticket…
A: Answer: Correct option: (3) Explanation of correct option: Opportunity cost = It refers to the cost…
Suppose that your neighbor has three choices of activity for Saturday morning: going hiking (valued at $20), going apple-picking (valued at $30), and going kayaking (valued at $10). If your neighbor chooses to go apple-picking, what is the
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Tonight, you and your friends are planning to see Black Panther for which you have a $4 off coupon. Without the coupon, the ticket is $10. Once you are at the cinema, your friends now want to see Captain Marvel. Both movies start and end at the same time. Assume that you have nothing else to do. If you decide to see Captain Marvel with your friends, what is your opportunity cost?It is a beautiful afternoon, and Jose is considering taking a leisurely two-hour stroll through the park. There are several other activities Jose is considering doing instead. The value Jose receives from each of the activities is provided in the table. Alternative Activities Value Streaming a movie $5 Taking a nap $8 Chatting with his best friend $13 Reading a new book $15 What is Jose’s cost of taking the stroll through the park?You are on a cruise in the Caribbean Sea, which cost $1,000. On this particular day you have the choice between two activities, both of which would provide marginal mental benefits to your state of mind. The first is a scuba diving trip whose cost was included in the price of the cruise (you get to swim with a school of hammerheads). The second is a shopping spree on St. Thomas that would cost you $500. Which costs and benefits (select all that apply) should you consider when deciding which activity to undergo? The $1,000 cost of the cruise. All of the above. The marginal benefits of the shopping trip. The $500 cost of the shopping trip. The marginal benefits of the scuba trip.
- You have two options for how to spend the afternoon. You can either go see a movie with your roommate or work as a tutor for the Math Department. From experience, you know that going to see a movie gives you $20 worth of enjoyment, and with your student discount, a movie ticket only costs $12. If you spend the afternoon working as a math tutor, you will get paid $45. On a typical day, you wouldn't be willing to spend the afternoon working as a math tutor for less than $35. What is your opportunity cost of seeing a movie this afternoon? Select one: O a. $57 O b. $12 ○ c. $22 ○ d. $8Assume you are spending your full budget and purchasing such amounts of X and Y that the marginal utility from the last units consumed is 40 and 20 utils respectively. Assume (a) the prices of X and Y are $8 and $4 respectively; (b) it takes 3 hours to consume a unit of X and 1 hour to consume a unit of Y; and (c) your time is worth $2 per hour. In equilibrium, if you included the opportunity cost of time then, you should substitute X for Y until the marginal utility per hour is the same for both products. should consume X and Y in the equal amounts. should consume less of Y and more of X. should consume less of X and more of Y.Consider your decision whether to go skiing for the weekend. Suppose transportation, lift tickets, and accommodation for the weekend cost $300. Suppose also that restaurant food for the weekend will cost $75. Finally, suppose you have a weekend job that you will have to miss if you go skiing, which pays you $120 (after tax) for the one weekend day that you work. What is the opportunity cost of going skiing? Do you need any other information before computing the opportunity cost?
- Stan Moneymaker needs 15 gallons of gasoline to top off his automobile’s gas tank. If he drives an extra eight miles (round trip) to a gas station on the outskirts of town, Stan can save $0.10 per gallon on the price of gasoline. Suppose gasoline costs $3.90 per gallon and Stan’s car gets 25 mpg for in-town driving. Should Stan make the trip to get less expensive gasoline? Each mile that Stan drives creates one pound of carbon dioxide. Each pound of CO2 has a cost impact of $0.02 on the environment. What other factors (cost and otherwise) should Stan consider in his decision making?Suppose you are scheduled to work at your job for 4 hours Friday night, where you make $10.00 per hour. However, once Friday arrives you decide to "call in sick" so you can go to the movies with your friends. At the movies, you spend $10 on a ticket and $15 on refreshments. How much did the night at the movies cost you?You were planning to spend Saturday working at your part-time job, but a friend asks you to go skiing. What is the true cost of going skiing? Now suppose you had been planning to spend the day studying at the library. What is the cost of going skiing in this case? Explain.
- Explain a situation where you had to make a choice given different options due to limited resources?You have two choices for how you are going to spend Saturday evening. You can go to the pub with your friends, which will cost you £30 for the evening. The pleasure you anticipate from this experience is worth £50 to you. Or you can go to the theatre The ticket will cost you £50, but you value the experience at £60. Based on this information. a)What is your opportunity cost of going to the pub? b)What is your economic cost of going to the pub? c)What is your economic rent of going to the pub?Anderson is facing the hardest decision in his life: Should he buy the newest Xbox Series X (cost $500), the newest Apple Airpod Max (cost $550), or the newest Apple Mac Pro Wheels Kit (cost $700). Right now, Anderson has exactly $700. Provided that Anderson already has EVERYTHING he needs and the $700 cannot be used on anything else to make him happier (in other words, the $700 should only be spent on these 3 items. Moreover, for example, if Anderson chooses to buy the Xbox for $500, the remaining $200 is not usable and has no value to Anderson). 1/ If Anderson chooses to buy the Airpod Max, what is the opportunity cost associated with that option? 2/ How would your answer in 1/ change if Anderson just won the $1 million lotteries today? 3/ How would your answer in 1/ change if Anderson just lost one of his $100 bill today, making him now only has $600 left?