Myeconlab New Design With Pearson Etext For Principles Of Microeconomics For Texas Tech University -- Standalone Access Card, 1/e
1st Edition
ISBN: 9781323487792
Author: Pearson Custom
Publisher: Pearson Education
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Chapter 2, Problem 1.11P
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The relevance of
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Question 30
Link and Zelda each have 12 hours a week they can spend making costumes and accessories for their cosplay group. Link has been doing this for years and can make a costume piece in 2 hours and an accessory item in 1 hour. Zelda is still learning and can make a costume piece in 3 hours and an accessory item in 2 hours.
The opportunity cost of 1 costume piece for Link in terms of accessory items (i.e. accessory items per costume piece):
Assume two moms live next to each other and both have one preschooler. They meet each other for the first time and discover that both of them work part-time twice a week. It turns out that both of them have their children attend a child care facility close to home. Furthermore, they each learn that when one mom is working the other is at home and vice versa. One of the moms has an idea and proposes to the other mom that each take care of the other's child while they work. That way they can save money on child care. If they do this, what will happen to the official GDP reported by the government and why? Is society necessarily worse off as a result of this arrangement?
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…
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Myeconlab New Design With Pearson Etext For Principles Of Microeconomics For Texas Tech University -- Standalone Access Card, 1/e
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