Chapter 2, Problem 11PAE

In a market economy, decisions are guided by individual self-interest. What impact does this have?   Question 6 options:   There is more need for a strong legal system to control individual greed.   There is a strong need for government intervention in the market.   There is less efficiency in market economies than in command economies.   There is still the ability to achieve desirable economic well-being for society as a whole.

Suppose you currently earn $40,000 a year. You are considering a job that will increase your lifetime earnings by $400,000 but that requires an MBA. The job will mean also attending business school full time for two years at an annual cost of $50,000. You already have a bachelor’s degree, for which you spent $150,000 in tuition and books. Which of the above information is relevant to your decision on whether to take the job? What is the opportunity cost of going to school to study MBA? Should you take the job? [Note: You will need to get the MBA]

. Which statement best describes why business economics is an important field of study? It examines how government policies impact other nations. It involves how population distribution affect the environment. It involves how limited resources influence personal decisions. It examines how financial traditions shape modern society.

4. The opportunity cost of changing your decision on what to major in college is highest___   a. before you have earned any of the credits needed to obtain the major you initially chose. b. after you have officially declared a major. c. after you have earned ½ of the credits to obtain the major you initially chose. d. after you have completed your major and received your diploma.

From Opportunity cost point of view. Although attending college is expensive, time-consuming, and requires effort, but people decide to attend college. Explain why?