2. You have 3 hours of free time. And you can think of 3 different uses of your time: 1) watching TV, 2) reading a novel, 3) playing basketball, Suppose you value them at $30, $25, $35, respectively. a) What is the opportunity cost of watching TV? Please specify the dollar value and explain how you get that answer. b) What is the opportunity cost of playing basketball? Please specify the dollar value and explain how you get that answer. c) Should you use the 3 hours of time to read a novel? Why or why not? Briefly explain your reasoning.

2. You have 3 hours of free time. And you can think of 3 different uses of your time: 1) watching TV, 2) reading a novel, 3) playing basketball, Suppose you value them at $30, $25, $35, respectively. a) What is the opportunity cost of watching TV? Please specify the dollar value and explain how you get that answer. b) What is the opportunity cost of playing basketball? Please specify the dollar value and explain how you get that answer. c) Should you use the 3 hours of time to read a novel? Why or why not? Briefly explain your reasoning.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter3: Scarcity, Trade-offs, And Production Possibilities

Section: Chapter Questions

Problem 6P

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Similar questions

Which one is false? Explain why that is false. 1. The production possibilities curve is a simple device for summarizing the possible combinations of output that a society can produce if it employs its resources efficiently. 2. One person has a comparative advantage over another in the production of a good if she or he can produce more of that good than the other person. 3. The Cost-Benefit Principle says that a person should take an action if, and only if, the benefit of that action is at least as great as its cost. 4. Market equilibrium occurs when the quantity buyers demand at the market price is exactly the same as the quantity that sellers offer. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure
Suppose that an economy produces only 2 goods, beer and pizza. Show a typical production possibilities frontier for this country and use it to define and explain the opportunity cost concept and the concept of increasing opportunity costs. If a technology was invented that made the production of beer much more efficient but had no effect on the production of pizza how would the production possibilities frontier change (show it). While all points on the production possibilities curves maximize production, which point maximizes satisfaction? 1. With reference to a diagram, show and explain how a market, left on its own, will tend toward an equilibrium in which there is neither a surplus nor a shortage of the product. 1. What condition must be met in order to conclude that an economy is maximizing social well-being? Do the equilibriums given by individual markets necessarily lead to the maximization of social well-being (that is, if demand is equal to supply, can you conclude that…
Draw a production possibilities curve for food and clothing. If you are operating on the curve, what is the opportunity cost of producing more clothing? If you are on the curve, is it possible to increase production of one good without decreasing the production of the other?
Evidence accumulates that the use of chemical fertilizers, which increases agricultural production greatly, damages water quality. Explain in words how you would draw a production possibilities curve to depict this (which "good" should be placed on each axis) and why your curve would have a particular shape.