PRINCIPLES OF MACROECONOMICS (LL)W/ACC.
PRINCIPLES OF MACROECONOMICS (LL)W/ACC.
7th Edition
ISBN: 9781264088980
Author: Frank
Publisher: MCG
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Chapter 1, Problem 2P
To determine

Estimate the additional pounds of compost to earn the extra revenue.

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You 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?
Jamal 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?
Joanne has just completed high school and is trying to determine whether to go to junior college for two years or go directly to work. Her objective is to maximize the savings she will have in the bank five years from now.   If she goes directly to work, she will earn $22,000 per year for each of the next five years. If she goes to junior college, for each of the next two years she will earn nothing—indeed, she will have to borrow $6,000 each year to cover tuition and books. This loan must be repaid in full three years after graduation. If she graduates from junior college, in each of the subsequent three years, her wages will be $41,000 per year. Joanne’s total living expenses and taxes, excluding tuition and books, equal $15,000 per year. Instructions:  Enter your responses as whole numbers. a.  Suppose, for simplicity, that Joanne can borrow and lend at 0 percent interest.  On purely economic grounds, should she go to junior college or work? After 5 years, the total value of…
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