Microeconomics A Contemporary Intro
10th Edition
ISBN: 9781285635101
Author: MCEACHERN
Publisher: Cengage
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Students have asked these similar questions
Question 1
Scarcity is the reason that opportunity costs arise. True False
Question 2
a. According to economic theory, society makes an important tradeoff between scarcity,
choice and opportunity costs. Carefully discuss this tradeoff with relevance to health
economics.
b. A reputable doctor quits his job, which pays $77,000 a year, to open a non-governmental organization (NGO) to serve the needs of orphans. His annual expenses for the NGO amounts to $62,700 for food and daily supplies $9,400 for maintenance, and $1,800 for books.
i. What is his opportunity cost of opening the NGO? (Show working)
ii. What core economic principles are considered in the doctor’s decision making?
what are the opportunity cost in the following questions:
a. buying a high-priced flat screen TV vs. a moderately- priced one.
b. deciding whether to buy a gift online or go to an actual store to buy it.
c. A firm trying to decide whether to allocate part of its budget to prototyping and testing and new product X.
d. firm considering investing in checkout automation technology.
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Similar questions
- match each term with the correct definition ;economics opportunity cost marginal analysis utility a. the next best thing that must be forgone in order to produce one more unit of a given product b. the pleasure happiness or satisfction obtained from consuming a good or service. c the social science concerned with how individuals institutions and society make optimal choices under conditions of scarcity d. making choices based on comparing marginal benefits with marginal costarrow_forwarda) Trade-offs are important part of economic decision making. You are supposed to Analyze and explain any three trade-offs that you face in your life. b) You plan to study on weekend and your friends ask you to go to a farm house with them. What do you think is the true cost of spending your weekend on a farmhouse with friends? c) You plan to spend your weekend working at your father’s superstore for a wage, but your friends ask you go play cricket at the weekend. What do you think is the true cost of spending your weekend playing cricket with friends?arrow_forwardCarefully define the following terms and explain their importance to the study of economics. a. resources b. rational decision c. scarcity d. opportunity costarrow_forward
- How does the concept of opportunity cost apply to personal decisions when you have limited income and time? Provide an example.arrow_forwardMatch each term with the correct definition. economics opportunity costmarginal analysis utilitya. The next-best thing that must be forgone in order to produce one more unit of a given product.b. The pleasure, happiness, or satisfaction obtained from consuming a good or service.c. The social science concerned with how individuals, institutions, and society make optimal (best) choices under conditions of scarcity.d. Making choices based on comparing marginal benefits with marginal costs.arrow_forwardtrade-offs that you face in your life.Explain them using the terms resources, scarcity/scarce, rational decisions, efficient decisions. (Please give 2 examples)arrow_forward
- Carefully define the following terms and explain their importance to the study of economics. A. Opportunity cost B. scarcityarrow_forwardHow does the slope of a budget line illustrate opportunity costs and trade-offs? How does a budget line illustrate scarcity and the effect of limited incomes?arrow_forward2. In weighing the costs versus the benefits of the decision we make we realize: Group of answer choices A. people face trade-offs B. goods are scarce C. households hate to make decisions D. we all must earn income to eatarrow_forward
- Q1: What is opportunity cost?Q2: Explain with example.arrow_forwardQ) .For a given question to be considered an economic question, it would need to involve:(a)money.(b)business.(c)a graph.(d)limited resources only.(e)limited resources and making a choice. Explain this with correct choice.arrow_forwardEconomics is concerned with A. All the given answers B. the effects of changes in opurtunity cost on decisions C. the competition that scarcity makes necessary D. the choices people must make because resources are scarcearrow_forward
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