Suppose rational decision-maker Carla decided to go to a concert and faced a choice: buy a ticket to see Beth Patterson or buy a ticket to see Robin Yukiko. She chose to purchase a ticket to see Robin. Suppose further that at the price of a ticket to see Beth was $20 and the price of a ticket to see Robin was $25. Carla's opportunity cost of seeing Robin was
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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.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?Determine whether each statement is true, false, or uncertain and explain why. i. The resources at the disposal of Mrs. Do Good can allow her produce at the points on her productions possibilities frontier. It can therefore be said that points inside the PPF are attainable and efficient and while points outside her PPF are inefficient and unattainable. ii. “An inferior good will always be inferior throughout the full range of incomes experienced by consumers.” iii. The “wants” of an individual can be equated to his/her “needs” in absolute sense. 2. Consider the following model for the toothbrush market in Girne. Suppose the aggregate demand for brushes in Girne is given by ( ⁄ ) where P denotes the price and Q denotes the quantity of brushes in terms of thousands of brushes demanded. The aggregate Supply for brushes in Girne is given by . a. Compute the toothbrush market equilibrium. What are the equilibrium price and quantity? b. Now suppose a tax of t = 60TL is imposed on each…
- If an economy can produce various combinationsof food and shelter along a productionpossibilities curve (PPC), then if we increase theproduction of shelter along the PPC, which ofthe following is true?a. We also increase the production of food.b. We must decrease the production of food.This forgone food production representsthe opportunity cost of the increase inshelter.c. We cannot change the production of food.d. The concept of opportunity cost does notapply along PPC.3. During the summer you have made the decision to attend summer school, which preve:ts you from working at your usual summer job in which you normally earn S5,000 for th summer. Your tuition cost is S3,000 and books and supplies cost S1,300. In terms of dollars, the opportunity cost of attending summer school is: A. SI0,300. B. S5,000. C. S4,300. D. S3,000.Ming is presented with four meal choices, of which she gets to choose one. Her order of preference is sushi, pizza, schnitzel, and curry. Assuming Ming chooses the sushi, what is the opportunity cost of her decision?
- 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 surewhile this topic may seem insensitive given the recent events in Uvalde (and others), in economics the "Guns vs. Butter" debate has been used for decades to describe the choice and trade-offs between producing a governmental capital goods (guns) vs. personal consumer goods (butter) in society. Please keep this in mind and do not get off topic in the guns vs. no guns debate or the idea of gun legislation. In this exercise you will demonstrate your ability to draw a simple production possibilities curve given data on the quantity of one input (labor) and the amount of labor required to produce each of two outputs (guns and butter). You should also be able to identify the opportunity cost of one good in terms of the other as the slope of the PPC. You will go on to explain your analysis. Guns or Butter? Suppose a nation has a total of 24 units of labor, which can be used to produce either guns or butter. One gun takes 6 units of labor to produce and 1 butter takes 2 units of labor to…During the Second World War, Germanys factories were decimated. It also suffered many human casualties, both soldiers and civilians. How did the war affect Germanys production possibilities curve?
- During World War II, auto production was cut drastically. The resources available could be used to produce tanks or passenger cars. The resources could be used in the following ways. Number of Tanks (1000’s) Number of Cars (1000’s) A. 0 150 B. 10 145 C. 20 130 D. 30 100 E. 40 60 F. 50 0 d)Where is the opportunity cost greater when giving up cars for tanks - moving from point B to C or from E toF? State the numbers. e) Where is the opportunity cost greater when giving up tanks for cars - moving from Point E to D or from point C to B? State the numbersConsider Angela who currently works as a data scientist with machine learning expertise. Recently,she was offered a job by Bruno’s firm. The job offer includes a higher salary than her current job andthe freedom to choose the number of work hours per day. But Angela is also an amateur musicianwho desperately dreams of becoming a professional one day. This motivates her to practice musicas much as possible, which makes her value her free time very much.Using the model of individual choice, and assuming Angela accepts the job offer, graphicallyillustrate the impact on her choice of free time and consumption. Fully label your diagram. Notethat there are no actual numbers given in this question: you may make them up or simply useappropriate notations. Explain specifically its impact on the following:• Angela’s choice of free time• Angela’s consumption level• Angela’s utility levelQ15.) Marie has a weekly budget of $24, which she likes to spend on magazines and pies. The price of a pie is $12. 1.) If the price of a magazine is $4 each, the maximum number of magazines she could buy in a week is m? 6 magazines 2.) If she buys 1 pie the number of magazines she can buy in a week is? 3 magazines 3.) What is her S opportunity cost of purchasing a pie? $4 What is question 4 answer? 4.) If Marie's weekly budget is $24, which she likes to spend on magazines and pies, and If the price of a pie is $12 each, what is the maximum number of pies she could buy in a week? ___
