1. Eunhee works at a bank and receives $30,000 a year as her annual salary. She decided to quit this job and study at a graduate school for 2 years. If she gets admitted to the school, her annual cost of attending school will be the tuition of $9,000 and living costs of $8,000. What is her opportunity cost of attending school? 2. Refer to the following graph and answer the questions below. sweaters 200 e 180 160 140 120 100 80 60 40 20 20 40 60 80 100 120 140 160 180 apples (a) Find inefficient points in this economy and briefly explain why those points are inefficient (b) Suppose that the economy is located on R. If this economy moves from R to U, what is the opportunity cost?

1. Eunhee works at a bank and receives $30,000 a year as her annual salary. She decided to quit this job and study at a graduate school for 2 years. If she gets admitted to the school, her annual cost of attending school will be the tuition of $9,000 and living costs of $8,000. What is her opportunity cost of attending school? 2. Refer to the following graph and answer the questions below. sweaters 200 e 180 160 140 120 100 80 60 40 20 20 40 60 80 100 120 140 160 180 apples (a) Find inefficient points in this economy and briefly explain why those points are inefficient (b) Suppose that the economy is located on R. If this economy moves from R to U, what is the opportunity cost?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter2: Scarcity And Opportunity Costs

Section: Chapter Questions

Problem 4E

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