Microeconomics (7th Edition)
Microeconomics (7th Edition)
7th Edition
ISBN: 9780134737508
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Chapter 2, Problem 2.1.11PA
To determine

Issue in the opportunity cost and trade-off.

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For each of the following, indicate how you might apply the four core principles of economics (the cost benefit principle, the opportunity cost principle, the marginal principle, or the interdependence principle). You are considering whether you should vote in the next election. You watch a beautiful sunset from the back porch of your home. Should you major in economics or philosophy? Should you and your spouse purchase a second vehicle?
Many people think that soda consumption also leads to increased obesity. Many schools have banned the sale of soda in vending machines. Use the idea of opportunity costs to explain why some people think these bans will reduce consumption. Do you agree?
Suppose you spend five hours studying for your final exam. In the first hour, you manage to review five pages of notes. In the second hour, your understanding of the first five pages allows you to cover seven additional pages. In the third hour, you cover five additional pages. In the fourth hour, you cover only two pages. By the fifth hour, you are so tired that you start to confuse yourself with what you have learned. Which economic concept best illustrates what you have just experienced? a.  Law of diminishing returns b.  Production function c.  Short run d.  Economic efficiency
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