EBK PRINCIPLES OF MACROECONOMICS
6th Edition
ISBN: 9780073534701
Author: Frank
Publisher: YUZU
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Chapter 1, Problem 4P
To determine
Explain the
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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.
600
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?
Catherine wins a non-transferable, non-refudnable ticket to attend Saturday's baseball game. Taylor plans to attend the same game, but she knows from experience she can purchase a $40 ticket the day of the game. On the day of the game, it is cold with off-and-on rain showers, weather that both Catherine and Taylor equally dislike, making the prospect of attending the game less attractive than before. If both Catherine and Taylor have the same tastes and rational:
a. Is one of them more likely to attend the baseball game than the other?
b. Instead of winning a ticket, assume that last week Catherine paid $40 for the non-trasnferable, non-refundable ticket to Saturday's game. Would this change whether or not one of them is more likely to attend the baseball game?
Chapter 1 Solutions
EBK PRINCIPLES OF MACROECONOMICS
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