Answer the given questions IN YOUR OWN WORDS and write your answers on the provided answer sheet. 1. The hardship of a family in Pahang forces two out of nine children of rubber tapper to quit school, and other four will have the same fate if the situation becomes worse. The head of the poor family said he couldn’t afford to send six children to school. He then decided to pull out of two of them from school after failing to get help in order to provide enough food everybody in the family. This is considered a sacrifice by the family in order to let the other four children continue their education. However, if the situation gets worse and without help of anyone, there is a possibility that the four children will have to quit school as well. This sad story has gained the attention of the Ministry of Education which has contributed school uniforms and textbooks to them. The government has also decided to give the four children scholarships, and monthly allowance of will soon be given to the family. a. Based on the above article, identify the problem of scarcity faced by this family, the choice that they had, and the opportunity cost incurred from the decision made. b. The allowance, the books, and the school uniforms could certainly help alleviate the problem faced by this family. Does it mean that scarcity does not exist anymore? Why?. 2. Explain the opportunity cost of converting farmland into residential land. Give two (2) opportunity costs

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Answer the given questions IN YOUR OWN WORDS and write your answers on the provided answer sheet. 1. The hardship of a family in Pahang forces two out of nine children of rubber tapper to quit school, and other four will have the same fate if the situation becomes worse. The head of the poor family said he couldn’t afford to send six children to school. He then decided to pull out of two of them from school after failing to get help in order to provide enough food everybody in the family. This is considered a sacrifice by the family in order to let the other four children continue their education. However, if the situation gets worse and without help of anyone, there is a possibility that the four children will have to quit school as well. This sad story has gained the attention of the Ministry of Education which has contributed school uniforms and textbooks to them. The government has also decided to give the four children scholarships, and monthly allowance of will soon be given to the family. a. Based on the above article, identify the problem of scarcity faced by this family, the choice that they had, and the opportunity cost incurred from the decision made. b. The allowance, the books, and the school uniforms could certainly help alleviate the problem faced by this family. Does it mean that scarcity does not exist anymore? Why?. 2. Explain the opportunity cost of converting farmland into residential land. Give two (2) opportunity costs.

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