EBK PRINCIPLES OF MACROECONOMICS
12th Edition
ISBN: 9780134079592
Author: Oster
Publisher: YUZU
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 2, Problem 1.1P
Subpart (a)
To determine
Relevance of
Subpart (a)
Expert Solution
Explanation of Solution
The opportunity cost of going home is, lost the time that can be used for other purpose like studying.
Economics Concept Introduction
Concept introduction:
Opportunity cost: Opportunity cost is the best alternative costs that forgo, or give up, when a decision or choice has to be taken.
Subpart (b)
To determine
Relevance of opportunity cost.
Subpart (b)
Expert Solution
Explanation of Solution
Opportunity cost of riding bicycle 20 miles every day is, alternative use of that time.
Economics Concept Introduction
Concept introduction:
Opportunity cost: Opportunity cost is the best alternative costs that forgo, or give up, when a decision or choice has to be taken.
Subpart (c)
To determine
Relevance of opportunity cost.
Subpart (c)
Expert Solution
Explanation of Solution
Opportunity cost of Federal government is, value of other goods and services that the government can buy with that tax revenue.
Economics Concept Introduction
Concept introduction:
Opportunity cost: Opportunity cost is the best alternative costs that forgo, or give up, when a decision or choice has to be taken.
Subpart (d)
To determine
Relevance of opportunity cost.
Subpart (d)
Expert Solution
Explanation of Solution
The opportunity cost of foreign government is, value of other goods and services that the government can buy with the subsidy amount.
Economics Concept Introduction
Concept introduction:
Opportunity cost: Opportunity cost is the best alternative costs that forgo, or give up, when a decision or choice has to be taken.
Subpart (e)
To determine
Relevance of opportunity cost.
Subpart (e)
Expert Solution
Explanation of Solution
Opportunity cost of upgrading balcony is, alternative use of that money.
Economics Concept Introduction
Concept introduction:
Opportunity cost: Opportunity cost is the best alternative costs that forgo, or give up, when a decision or choice has to be taken.
Subpart (f)
To determine
Relevance of opportunity cost.
Subpart (f)
Expert Solution
Explanation of Solution
Opportunity cost of watching game is, value of alternative use of time like study, sleep etc.
Economics Concept Introduction
Concept introduction:
Opportunity cost: Opportunity cost is the best alternative costs that forgo, or give up, when a decision or choice has to be taken.
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Shannon has decided to spend less time on social media because she needs to improve her grades. What might be the opportunity cost of her decision?
After much consideration you have chosen Cancun over Fort Lauderdale for your spring break trip this year. For this decision to change, which of the following must occur?
A) The marginal cost of Cancun must decrease
B) The marginal cost of Fort Lauderdale must increase
C) The marginal benefit of Fort Lauderdale must increase
D) The marginal benefit of Cancun must increase.
can you tell me what the correct answer is and further explain marginal costs and marginal benefits?
What is the opportunity cost of going to a movie?
the price of the ticket
the price of the ticket plus the cost of any soda and popcorn you buy at the theatre
the total cash expenditure needed to go to the movie plus the value of your time
zero, as long as you enjoy the movie and consider it a worthwhile use of time and money
Chapter 2 Solutions
EBK PRINCIPLES OF MACROECONOMICS
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- 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.arrow_forward“Scarcity is the fundamental problem that every nation in this world faces.” What do you mean by this statement? If you were an economist how would you address this fundamental problem?arrow_forwardWalter, Yvonne, Tyler, and Phoebe are college roommates. They're trying to decide where the four of them should go for spring break: Vail or Daytona Beach. If they order the tickets by 10:00 PM on February 1, the cost will be just $500 per person. If they miss that deadline, the cost rises to $1,200 per person. The following table shows the benefit (in dollar terms) that each roommate would get from the two trips. Roommate Walter Yvonne Tyler Phoebe Benefit from Vail $1,250 $800 $650 $600 Benefit from Daytona Beach The roommates tend to put off making decisions. So, when February 1 rolls around and they still haven't made a decision, they schedule a vote for 9:00 PM that night. In case of a tie, they will flip a coin between the two vacation destinations. The roommates will get the most total benefit if they choose to go to Roommate Walter Yvonne Tyler Phoebe $550 $800 $850 $1,050 Given the individual benefits each roommate receives from the two trips, which trip will each roommate…arrow_forward
- Somewhere in Kenya, a girl logs on for a personalized math lesson from California-based Khan Academy. Thousands of Syrian refugees rely on Facebook updates for the latest information to guide their journey through Europe. A multinational energy giant launches plans to use sensors on 4,000 oil wells around the world to monitor production remotely. A manufacturer in Australia buys components from a Chinese supplier on Alibaba, and a clinical trial in India transmits patient data to US pharmaceutical researchers Flows of physical goods and finance were the hallmarks of the 20th-century global economy, but today those flows have flattened or declined. Twenty-first-century globalization is increasingly defined by flows of data and information. This phenomenon now underpins virtually all cross-border transactions within traditional flows while simultaneously transmitting a valuable stream of ideas and innovation around the world. . Increasing flow of data and information, effectively what we…arrow_forwardEconomics Describe an interaction in the business world that can be described as each of the following. Note that your example can be interactions between competitors, between firms on a supply chain, or among employees or investors within a firm. (a) Prisoner's Dilemma-style game (cooperation beneficial, but defecting is dominant) (b) Coordination game (like Stag Hunt) (c) Competing coordination game (like Date Night or Format Wars) (d) Mixed equilibrium game (e) Sequential game with first-mover advantage (f) Sequential game with second-mover advantagearrow_forwardFor each of the following, describe some of the potential opportunity costs: a. Going home for Thanksgiving vacation b. Riding your bicycle 20 miles every day c. The federal government using tax revenue to purchase 10,000 acres in Florida for use as a bird sanctuaryarrow_forward
- Discuss a consequence scarcity has on our lives. Ideas that you may want to consider and discuss are choices, unlimited wants, the three economic questions, and limited resources.arrow_forwardYou plan to study on weekend and your friends ask you to go to a farm house with them. What do you think is the true cost of spending your weekend on a farmhouse with friends?arrow_forwardEconomics In a bygone day, airlines issued discount tickets to students who would be willing to fly on a particular day,with no notice, at a discounted price, one needed to show proof of being of student. The students would have to fly "standby", if and only if there was an available seat, only on that day. Students were able to obtain these tickets, make fictitious reservations, cancel the reservations at the last minute, and secure a seat on the flight at a discounted price. Answer the following questions. a Is this a form of price discrimination? Why? Include in your analysis differing levels of elasticity, if relevant, and any other feature b. Why would an airline use this practice? Provide a dollar and cents example. The airlines caught up with this scheme and ended it. What principal of price discrimination did the students violate so as to end it?arrow_forward
- Someone gives up going to see a movie to study for a test in order to get a good grade. The opportunity cost is the cost of the movie and the enjoyment of seeing it.arrow_forwardUsing an economic point of view, please describe and explain the following two situations: Describe how you might determine the economically efficient number of exit doors on an airline, or the economically efficient number of safety marshals assigned to an airline flight. In 1938, the FDA was given the authority to require drug manufacturers to test and prove the safety of their product before distribution. What are some opportunity costs of this decision?arrow_forwardWhich of the following is an example of a microeconomic topic? a) How to run a business and earn a profit. b) How to prevent nearby companies from polluting local groundwater. c) How to reduce abuse by companies with monopoly power. d) All of the choices are correct. e) How to retire at age 50 with a million dollars net worth.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co