EBK PRINCIPLES OF MACROECONOMICS
6th Edition
ISBN: 9780073534701
Author: Frank
Publisher: YUZU
expand_more
expand_more
format_list_bulleted
Question
Chapter 1, Problem 1RQ
To determine
Explain the statement ‘the private classes are better than the group classes’.
Expert Solution & Answer
Explanation of Solution
In general, the benefits from private lessons are greater than attending group lessons. People those who do not care about the time of learning tennis will attend group lessons and spend what they save on other things. Thus, the private lessons are more costly than group lessons.
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Suppose that there are three beachfront parcels of land available for sale in Astoria, and six people who would each like to purchase one parcel. Assume that the parcels are essentially identical and that the selling price of each is $745,000. The following table states each person's willingness and ability to purchase a parcel.
Willingness and Ability to Purchase
(Dollars)
Alyssa
720,000
Brian
690,000
Crystal
680,000
Nick
900,000
Rosa
810,000
Tim
770,000
Which of these people will buy one of the three beachfront parcels? Check all that apply.
Alyssa
Brian
Crystal
Nick
Rosa
Tim
Assume that the three beachfront parcels are sold to the people you indicated in the previous section. Suppose that a few days after the last of those beachfront parcels is sold, another essentially identical beachfront parcel becomes available for sale at a price of $732,500. This fourth parcel _____________be sold…
Ana and Ivan each individually and simultaneously decide whether to spend the evening at a play or a concert. Ana prefers to attend the concert twice as much without Ivan than to attend the play without him, and she prefers this three times more than being in the same place with Ivan (and at that point, she doesn't care where they are). Ivan prefers being in the same place with Ana twice as much as being at the play without her, and he prefers this four times more than being without Ana at the concert. Both have von Neumann-Morgenstern (vNM) preferences. With what probability will Ivan choose to attend the concert in Nashe's equilibrium?
You have two options for how to spend the afternoon. You can either go see a movie with your roommate or work as a tutor for the Math
Department. From experience, you know that going to see a movie gives you $20 worth of enjoyment, and with your student discount, a movie ticket
only costs $12. If you spend the afternoon working as a math tutor, you will get paid $45. On a typical day, you wouldn't be willing to spend the
afternoon working as a math tutor for less than $35. What is your opportunity cost of seeing a movie this afternoon?
Select one:
O a. $57
O b. $12
○ c. $22
○ d. $8
Chapter 1 Solutions
EBK PRINCIPLES OF MACROECONOMICS
Knowledge Booster
Similar questions
- Ahmed is considering his plans for the coming weekend. He is currently working as a marketing specialist in a big advertising company. He normally spends the weekend with family but this weekend he is thinking of going on a camping trip that would cost him about $1,900. At the same time, his manager asked him whether he can help during the weekend and the company will be willing to pay him an overtime bonus of $1,000. If Ahmed goes on the camping trip, he can manage to provide a number of quick consultancy services that would earn him around $2,500. If Ahmed decided to go on the camping trip what would be the incremental cost of that decision ($)? a. None of the given answerS O b. 1,000 O c. 2,500 O d. 1,900 O e. 600arrow_forwardYou are considering whether you should go out to dinner at a restaurant with your friend. The meal is expected to cost you $40, you typically leave a 20% tip, and an Uber will cost you $5 to get there. You value the restaurant meal at $20. You enjoy your friend’s company and are willing to pay $30 just to spend an evening with her. If you did not go out to the restaurant, you would eat at home using groceries that cost you $8. How much are the benefits and costs associated with going out to dinner with your friend? Should you go out to dinner with your friend?arrow_forwardMing lives in Seattle and recently bought a $125 ticket to attend a Seattle Seahawks game. He is a huge fan, so even though the ticket is pricey it is well below his willingness to pay of $250 However, as game day approaches, Ming receives an invitation from his friend, Cassandra, to spend the day at the Museum of Pop Culture touring a big exhibit on Marvel superheroes. The museum visit would only cost $75, but Ming (being a big Marvel fan too) would be willing to pay $150. What is his opportunity cost of going to the Seattle Seahawks game? Ming's total opportunity cost of going to the Seattle Seahawks game is $ (Enter a numeric response using an integer)arrow_forward
- Van has plans to go to an opera and already has a $100 nonrefundable, nonexchangeable, and nontransferable ticket. Now Amy, whom Van has wanted to date for a long time, asks him to a party. Van would prefer to go to the party with Amy and forgo the opera, but he doesn't want to waste the $100 he spent on the opera ticket. From the perspective of an economist, if Van decides to go to the party with Amy, what has he just done? 1. Incorrectly allowed a sunk cost to influence his decision 2. Made a choice that was not optimal 3 Correctly ignored a sunk cost 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.arrow_forwardJamal has a very flexible summer job. He works every day but is allowed to take a day off anytime he wants. His friend Don suggests they take off work on Tuesday to go to the amusement park. The admission charge for the amusement park is $15 per person, and it will cost them $5 each for gas and parking. Jamal loves amusement parks and a day at the park is worth $40 to him. However, Jamal also enjoys his job so much that he would actually be willing to pay $5 per day maximum to do it a) If Jamal earns $10 if he works, what is the cost and benefit of going to the park? Should he go to the amusement park?arrow_forwardOne type of systematic error arises because people tend to think of benefits in percentage terms rather than in absolute dollar amounts. As an example, Samir is willing to drive 20 minutes out of his way to save $4 on a grocery item that costs $10 at a local market. But he is unwilling to drive 20 minutes out of his way to save $10 on a laptop that costs $400 at a local store. In percentage terms, how big is the savings on the grocery item? On the laptop? In absolute terms, how big is the savings on the grocery item? On the laptop? If Samir is willing to sacrifice 20 minutes of his time to save $4 in one case, shouldn't he also be willing to sacrifice 20 minutes of his time to save $10?arrow_forward
- Suppose that Ciana is deciding whether or not to buy a pair of sneakers that she has been researching online, and also the best place to make her purchase. Three different stores in the area sell the sneakers she likes, but some stores are more convenient for Ciana to reach than others. One option is her local shoe store located only 15 minutes away from where she works, where they charge a marked-up price of $124 for the sneakers: Store Travel Time Each Way Price of a Sneakers (Minutes) (Dollars per sneakers) Local Shoe Store 15 124 Different Neighborhood in Town 30 103 Rural Outlet 60 70 Ciana earns an hourly wage of $30 at her job. In order to purchase her sneakers she will have to take time off work, so each hour away from her job costs her $30 in lost income. Assume that Ciana’s travel time is the same each way (to and from the store) and that it will take her 30 minutes once she reaches a store to complete her shopping. Assume throughout the question…arrow_forwardYou must allocate the 70,000 seats in Reliant Stadium (in Houston) among Texan (Houston) and Cowboy (Dallas) fans for an upcoming game between the two footfall teams. You can set different prices for seats in the Dallas and Houston sections of the stadium. Suppose you can obtain $40/ticket from Houston fans irrespective of the number of seats you allocate to Houston fans. You must drop price in order to sell more tickets to Dallas fans, however. Let Q be the number of tickets you allocate to Dallas fans. Assume that the maximum price you can charge for these tickets is given by the following inverse demand function P= 80 500 (a) Express the total revenue (on all 70,000 seats) from ticket sales as a function of Q; (b) Derive the first-order condition of the revenue-maximizing problem (it's a function about Q); (c) What is the optimal number of seats allocated to Dallas fans?arrow_forward2arrow_forward
- The diagram below represents a 3-consumer economy, revealing each individual's demand curve (D1, D2, and D3). Using the 3 individual demand curves, construct/draw the market demand curve. [Options for submission: 1) take a screenshot of the figure, copy/paste into Word, and use the drawing tool to draw the market demand curve or 2) recreate the diagram on your own paper (careful to correctly label all intercepts and curves) and draw the market demand with a different color pen(s)] --> upload your image into this question before submission Please show in the picture how to identify. 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.arrow_forwardImagine that you are at dinner with an acquaintance and that you are each independently choosing what to order for dinner: a burger (which costs $8), or a chicken ($12). In terms of enjoyment, you each have the same preferences: you value the burger at $14, chicken at $17. In other words, if you were dining alone and ordered a burger, your payoff would equal $14- $8 = $6. In this case, however, you will split the bill equally with your companion and thus your payoff depends both on your own order and the order of your acquaintance. Specifically, each diner's payoff is equal to the value of their own meal minus half the cost of the total bill. They also get a payoff of $2 when both of them choose the same meal. (a) Write down the normal form representation of the game in which both players are independently choosing between the actions Burger, Chicken. (b) What are pure and mixed Nash equilibria? Draw best response graphs according to beliefs.arrow_forwardMika earns $379 per week which she spends entirely at the grocery store, purchasing either food or alcohol. The price of food is $1/unit, while the price of alcohol is $4/unit. Mika receives an additional $50/week in food stamps that can only be only be used to buy food at the grocery store (so, this money could be used to buy food but NOT alcohol). Mika knows someone who will give her cash in exchange these food stamps at a rate of $0.50 in cash for every $1 in food. stamps. Cash, of course, can be used to buy either food or alcohol. What is the vertical coordinate of the vertical intercept of Mika's budget constraint if she were to graph quantity of food on the horizontal axis and quantity of alcohol on the vertical axis? (Note: The answer may not be a whole number, so round to the nearest hundredth)arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning