Suppose Alphonso’s town raises the price of bus tickets from $0.50 to $1 and the price of burgers rises from $2 to $4. Why is the opportunity cost of bus tickets unchange
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Suppose Alphonso’s town raises the
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- What is an opportunity cost? How does the idea relate to the defifinition of economics? Which of the following decisions would entail the greater opportunity cost: Allocating a square block in the heart of New York City for a surface parking lot or allocating a square block at the edge of a typical suburb for such a lot? Explain.Which of the following choices correctly illustrates how changes in opportunity costs affect supply? Choice 1 of 4:A farmer produces corn and wheat. The price of wheat rises; so he shifts his resources towards wheat and the supply of wheat rises.Choice 2 of 4:Milk and cereal are complementary goods; so when the price of cereal falls, the quantity supplied of milk rises.Choice 3 of 4:A fisherman fishes for lobsters and oysters. The price of lobsters rises; so he decides to spend more of his time fishing for oysters because he can make the same amount of money with fewer lobsters.Choice 4 of 4:A textbook for economics becomes cheaper; so more students opt to buy that particular textbook.Define the opportunity cost . What is the significance of opportunity cost in economics.
- Which of the following is illustrated by a production possibilities curve that is "bowed out" or concave to the origin? options: a trade-off in which the opportunity cost of a good decreases with the level of its production a trade-off in which the opportunity cost of a good increase with the level of its production a trade-off in which the opportunity cost of a good is constant at all levels of production the fallacy of compositionAnswer the given question with a proper explanation and step-by-step solution. Which of the following choices correctly illustrates how changes in opportunity costs affect supply? A) A farmer produces corn and wheat. The price of wheat rises, so he shifts his resources toward wheat and the supply of wheat rises. B) A fisherman fishes for lobsters and oysters. The price of lobsters rises, so he decides to spend more of his time fishing for oysters because he can make the same amount of money with fewer lobsters. C) A textbook for economics becomes cheaper, so more students opt to buy that particular textbook. D) Milk and cereal are complementary goods, so when the price of cereal falls, the quantity supplied of milk rises.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?
- Consider your decision whether to go skiing for the weekend. Suppose transportation, lift tickets, and accommodation for the weekend cost $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 if you go skiing, which pays you $120 (after tax) for the one weekend day that you work. What is the opportunity cost of going skiing? Do you need any other information before computing the opportunity cost?An economy will be operating on a point inside of its production possibilities frontier if there is inefficiency in resource allocations.what is meant by inefficiency ?you may find it helpful to use an example in your answer.Suppose the economy initially produces 9,000 pieces of clothing and 500 million barrels of oil, which is represented by point A. The opportunity cost of producing an additional 3,000 pieces of clothing (that is, moving production to point B) is __________ (options: 60 million, 80 million, 100 million, 120 million, 150 million) barrels of oil. Suppose, instead, that the economy currently produces 420 million barrels of oil and 12,000 pieces of clothing, which is represented by point B. Now the opportunity cost of producing an additional 3,000 pieces of clothing (that is, moving to point C) is ________ (options: 60 million, 80 million, 100 million, 120 million, 150 million) barrels of oil. Comparing your answers in the two previous paragraphs, you can see that the opportunity cost of 3,000 additional pieces of clothing at point B is ________ (opptions: greater than, equal to, less than) the opportunity cost of 3,000 additional pieces of clothing at point A. This reflects the ______…
- Refer to the above diagram. Points A, B, C, D, and E show: Multiple Choice that the opportunity cost of bicycles increases, while that of computers is constant. combinations of bicycles and computers that society can produce by using its resources efficiently. that the opportunity cost of computers increases, while that of bicycles is constant. that society's demand for computers is greater than its demand for bicycles.According to Polonyi,need for economy arises a)because scarcity of resources needs efficient allocation b)because humans cannot survive without interaction with nature c)because it provides physical environment to sustain human life d)because humans cannot survive without productionWhich of the following is true of an economy’s production possibilities curve? a. It shows the combinations of any two resources that can be used to produce an efficient level of output. b. It shows the alternative combinations of goods that can be produced by fully employing scarce resources. c. It must be a straight line when all resources are fully employed. d. It is bowed in (convex to the origin) because of changing levels of technology. e. It is bowed out (concave to the origin) when marginal opportunity costs are constant.
