EP ECONOMICS,AP EDITION-CONNECT ACCESS
20th Edition
ISBN: 9780021403455
Author: McConnell
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 8, Problem 3DQ
To determine
The heuristics.
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Neha and Lorenzo need to decide which one of them will take time off from work to complete the rather urgent task of digging postholes for their new fence. Neha is pretty good with a post auger; she can dig the holes in 30 minutes. Lorenzo is somewhat slow; it takes him 5 hours to dig the holes. Neha earns $110 per hour as a personal trainer, while Lorenzo earns $25 per hour as a clerk.
Keeping in mind that either Neha or Lorenzo must take time off from work to dig the holes, who has the lower opportunity cost of completing the task?
a) Neha and Lorenzo face identical opportunity costs
b)Neha
C)Lorenzo
Julia and Ralph need to decide which one of them will take time off from work to complete the rather urgent task of pruning their trees. Julia is pretty good with a pole saw; she can prune the trees in 1 hour. Ralph is somewhat slow; it takes him 6 hours to prune the trees. Julia earns $120 per hour as a business consultant, while Ralph earns $15 per hour as a lifeguard.Keeping in mind that either Julia or Ralph must take time off from work to prune the trees, who has the lowest opportunity cost of completing the task?
Last Word) Behavioral economics incorporates culture and the studies of
Multiple Choice
sociology and economics.
psychology and economics.
mathematics and economics.
finance and economics.
None of these choices are correct.
Chapter 8 Solutions
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