Comm 1110 pre tutorial questions
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University of New South Wales *
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COMM1110
Subject
Communications
Date
Jan 9, 2024
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docx
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2
Uploaded by JudgeCrowMaster986
Comm 1110 pre tutorial questions
Week 1
Question 1
What is meant by the term “opportunity cost”? What is an example of an opportunity cost of starting a business venture?
Opportunity cost refers to the next best thing that has to be forgone when a choice is made. An example of this in the stating of a business venture may be a more ‘stable’ job under a larger firm.
Question 2
Karen’s friends have invited her to see a movie the following weekend. Karen has a job at a fast food restaurant and can earn $50 working there during the time she would be at the movie. She can also babysit for a neighbour for $60 instead
of going to the movies or working at her fast food job. If the movie ticket costs $15, and bus ride to the theatre costs $4, what is Karen’s opportunity cost of going to the movie?
$79
Question 3
James has a ticket for a football match in Sydney for which he paid $45. On the day of the game he takes the train to Sydney Olympic Park, which costs him $3. When he arrives, he realises that the game is taking place in Moore Park instead.
He can take a taxi for $50 and arrive just in time for the match. Otherwise, he will miss it. Suppose James values watching the match at $70. Should he take the taxi or go home?
He should go home
Question 4
Suppose that Joshua spends 6 hours per day baking pastries. He can make one croissant every 10 minutes and make one cinnamon scroll every 25 minutes.
A.
What is Joshua’s opportunity cost of making croissants in terms of cinnamon scrolls?
~2.5 cinnamon scrolls per criossant
B.
At his local farmer’s market, Joshua can buy or sell as many pastries as he wants at a price of $4 per croissant and $8 per cinnamon scroll. If Joshua only wanted to consume croissants, how many of each pastry should Joshua make?
C.
If, instead, Joshua only wanted to consume cinnamon scrolls, how many of each pastry should Joshua make? What is the greatest amount of cinnamon scrolls Joshua can consume?
D.
Suppose that the prices increased to $8 per croissant and $16 per cinnamon scroll. How would Joshua’s decision change?
E.
Suppose instead that the price of croissants remained at $4, but the price of cinnamon scrolls increased to $16. How would Joshua’s decision change?
Question 5
George and Martha are furniture producers who can produce tables and chairs. The table below the number of each that they can produce per week.
Tables
Chairs
George
10
20
Martha
4
12
A.
Who has an absolute advantage in producing tables? chairs?
George has the absolute advantage in producing both
B.
What is the opportunity cost for George of tables in terms of chairs?
The opportunity cost of producing each table is 2 chairs
C.
Who has a comparative advantage in producing tables?
George
D.
Suppose that George and Martha go into business together making dining sets that include one table and two chairs. What is the greatest number of dining sets they can produce?
8 sets
Question 6
Consider the principle of comparative advantage. Can you think of a situation in which it would not be possible for two people to benefit from specializing and trading with one another?
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