Montana decides to spend three hours working overtime rather than watching Netflix with her friends an hour. What is her opportunity cost of working? nothing, because she would have received less than $45 of enjoyment from Netflix the $45 she earns working the enjoyment she would have received had she watched Netflix the $45 minus the enjoyment she would have received from watching Netflix not enough information to determine
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- Suppose that John could work 365 days per year and could earn $200 per day for each day he worked. Draw his budget lines with respect to his labor-leisure choice.As a student, Jordyn spends 40 hours per week writing term papers and completing homework assignments. On one axis of her production possibilities frontier is measured the number of term papers written per week. On the other axis is measured the number of homework assignments completed per week. Jordyn's production possibilities frontier is a straight line if Question 3 options: she faces no trade-off between writing term papers and completing homework assignments. she can switch between writing term papers and completing homework assignments at a constant rate. the rate at which she can switch between homework assignments and term papers depends on the number of homework assignments she is completing and on the number of term papers she is writing. she is required by her professors to spend half of her time on term papers and the other half of her time on homework assignments.Suppose Andrea has a job that pays her $50 000 per year (after taxes). She is considering quitting her job and going to university full time for four years. Tuition fees and books will cost $12 000 per year. Living expenses in either situation will cost $20 000 per year. What is the opportunity cost of Andrea's four-year university degree? $200 000 $128 000 $288 000 $240 000 $248 000
- Davis Florist has two employees, Anita and Jerome, and two tasks that need to be completed, floral arrangements and floral delivery. It takes Anita 30 minutes to finish one floral arrangement and 40 minutes to make a delivery. It takes Jerome 10 minutes to finish one floral arrangement and 30 minutes to make a delivery. Each worker works six hours per day. a. Draw each worker's production possibility curve. (Hint: Calculate the extreme cases only, a.k.a. if the worker only produced deliveries with the six hours, or they only produced arrangements in six hours.) b. Who has the absolute advantage in making floral arrangements? c. Who has the absolute advantage in making deliveries? d. Draw the comparative advantage table. Calculate the opportunity cost of each task for each student. e. Who has the comparative advantage in floral arrangements? f. Who has the comparative advantage in deliveries? g. Calculate the gains from trade. (Hint: Calculate how many units would be produced by who…Class Activity •Choice land has 250 workers and produces only two goods, X and Y. Labouris the only factor of production, but some workers are better suited to producing X than Y (and vice versa). The Table below shows the maximum levels of output of each good possible from various levels of labout input a)Draw the production possibilities boundary on a scale diagram, with the production of X on the horizontal axis and the production of Y on the vertical axis. b)If the economy is producing 20 units of X and 800 units of Y, what is the opportunity cost of producing an extra 10 units of XAssume the town of Sherwood consists of 2 types of workers: artists and engineers. The table below depicts the number of bookshelves and backpacks each type of worker can produce in an hour. Bookshelves Backpacks Artists 2 5 Engineers 3 3 a. For each type of worker, calculate their opportunity cost of producing a bookshelf (in terms of backpacks): Artist: backpacks Engineer: backpacks b. Suppose there are 100 of each type of worker in Sherwood (so 200 workers total), and each worker can work 8 hours a day. The graph below plots the daily combined production possibilities frontier (PPF) for this economy. What is the x-intercept of this PPF? What is the y-intercept of this PPF? What are the coordinates of point A? ( bookshelves, backpacks) What is the slope of segment 1? c. Suppose Sherwood has an opportunity to trade some of the bookshelves they produce with a neighboring town in return for backpacks, and the other town offers a price of 0.5…
- Elliot and Jordy find themselves on a deserted island. The only two activities available are fishing and finding pineapples. In a full day, Elliot can catch 6 fish or find 12 pineapples or some linear combination of the two; in the same time, Jordy can catch 4 fish or find 10 pineapples or some linear combination of the two. What are each individual’s marginal costs of fishing and finding pineapples? (must provide the correct answer for full credit, no additional work is necessary) Who has an absolute advantage in fish production? Who has an absolute advantage in finding pineapples? Briefly explain your reasoning. Who has a comparative advantage in fish production? Who has a comparative advantage in finding pineapples? Briefly explain your reasoning.Consider your decision about whether to go skiing for the weekend. Suppose transportation, lift tickets, and accommodation for the weekend costs $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 to go skiing, which pays you $120. Calculatethe opportunity cost of going skiing? Do you need any other information about computing the opportunity cost?Tully is a graduating high school senior deciding between three alternative combinations of education-work options. He could start working immediately and earn $30,000 working in a burrito truck in period one. His salary would increase to $60,000 in period 2 as he would become chef, and then fall in period 3 to $50,000 as he would become too physically tired to work too much in the kitchen. His first alternative is to spend $15,000 to attend Da-Lousy University for economics and earn an undergrad degree in period 1. Upon obtaining his degree he would earn $80,000 as an economist for periods 2 and 3. The final option is for Tully to complete a doctorate degree in economics after finishing his undergrad degree. There would be no direct costs as he would get scholarships, but he could not work in period 2 while he completed his PhD. After finishing his PhD he would earn $200,000 as an Econ Prof at Kings University in period 3. His discount rate is 15 percent per period. What should Tully…
- Matt spends 3 hours working rather than playing pool with his friends. if he eams $25 an hour,what is his opportunity cost of working? 1. the $75 he earns working 2. the $75 minus the enjoyment he would have received from watching YouTube. 3. the enjoyment he would have recelved had he played pool with his friends 4. nothing. since he would have received less than $25 of enjoyment from playing poolComplete the following logical statement: "Because of , individuals and societies must make choices, and they must therefore consider the opportunity cost of every action."Maria and Kevin need to decide which one of them will take time off from work to complete the rather urgent task of shearing their llamas. Maria is pretty good with a pair of shears; she can shear the llamas in 1 hour. Kevin is somewhat slow; it takes him 5 hours to shear the llamas. Maria earns $190 per hour as a psychiatrist, while Kevin earns $15 per hour as a cobbler. Keeping in mind that either Maria or Kevin must take time off from work to shear the llamas, who has the lower opportunity cost of completing the task? Maria Kevin Maria and Kevin face identical opportunity costsFrances is a skilled toy maker who is able to produce both trucks and drums. She has 8 hours a day to produce toys. The following table shows the daily output resulting from various possible combinations of her time. Choice Hours Producing Produced (Trucks) (Drums) (Trucks) (Drums) A 8 0 4 0 B 6 2 3 10 C 4 4 2 16 D 2 6 1 18 E 0 8 0 19 Suppose Frances is currently using combination D, producing one truck per day. Her opportunity cost of producing a second truck per day is _______. Now, suppose Frances is currently using combination C, producing two trucks per day. Her opportunity cost of producing a third truck per day is ________ per day. From the previous analysis, you can determine that as Frances increases her production of trucks, her opportunity cost of producing one more truck _______. Because she can now make more trucks per hour, Frances's opportunity cost of producing drums is…