FIGURE 6 (ii) Gordon's labor-leisure cholce 240 24 Hours of leisure per day All the questions below are referring to Figure 6 (ii), Explain and show your computation in your answer a) Gordon's opportunity cost of one hour of leisure is b) The opportunity cost for a day's worth of income is of leisure. Income per day

FIGURE 6 (ii) Gordon's labor-leisure cholce 240 24 Hours of leisure per day All the questions below are referring to Figure 6 (ii), Explain and show your computation in your answer a) Gordon's opportunity cost of one hour of leisure is b) The opportunity cost for a day's worth of income is of leisure. Income per day

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

6. Scarcity, opportunity cost, and marginal analysis Cho is training for a triathlon, a timed race that combines swimming, biking, and running. Consider the following sentence: In order to swim for an hour, Cho must take time away from work, where she earns $10 per hour. This is in addition to paying a $4 entrance fee for the pool. Which basic principle of individual choice do these statements best illustrate? A-The cost of something is what you give up to get it. B-People usually exploit opportunities to make themselves better off. C-Trade can make everyone better off. D-Markets are usually a good way to organize economic activity.
Rich's Opportunities. Rich has no nonlabor income, and suppose the price of consumption is $1 per unit. Rich earns $15 per hour, and he has 16 hours in the day to allocate between working and leisure time. The figure be depicts his budget line. consumption (units/day) 240 210 180 150 120 90 60 30 0. 21 4. 6. 8. 10 12 14 16 leisure (hours/day) Rich is thrilled to learn that his folks will give him a $10 daily allowance starting tomorrow. What happens to Rich's opportunities tomorrow? O a. Rich's endowment point shifts left $10. Ob. His budget line shifts up 10 units of consumption per day. O c. The slope of Rich's budget line increases (in absolute value) $10 per day. O d. The slope of Rich's budget line decreases (in absolute value) $10 per hour.
If a family spends its entire budget in a given time frame, the family can afford either 95 cans of vegetables or 40 frozen dinners. Assuming the family spends its entire budget on just these two goods, what is the opportunity cost of a can of vegetables in the time frame?
5. Opportunity cost and production possibilities Musashi is a talented artist who sells hand-crafted goods on his website. Musashi currently crafts and sells both crochet hats and baskets. He spends 8 hours a day working on crafts. The following table gives different daily output scenarios depending on how much of his time is spent on each good. BASKETS Hours Crafting Produced Choice (Crochet hats) (Baskets) (Crochet hats) 0 A B is C D E 30 25 10 5 0 8 0 6 On the following graph, use the blue points (circle symbol) to plot Musashi's initial production possibilities frontier (PPF). 4 2 0 2 2 4 6 8 3 4 5 CROCHET HATS 3 2 1 0 (Baskets) 0 11 16 19 20 8 Initial PPF New PPF ? Suppose Musashi is currently using combination D, producing one crochet hat per day. His opportunity cost of producing a second crochet hat per day per day. Now, suppose Musashi is currently using combination C, producing two crochet hats per day. His opportunity cost of producing a third crochet hat per day is ▼per…
For each of the following situations involving marginal cost (MC) and marginal benefit (MB), indicate whether it would be best to produce more, fewer, or the current number of units. a. 3,000 units at which MC = $10 and MB = $13: (Click to select) More Fewer Current number . b. 11 units at which MC = $4 and MB = $3: (Click to select) More Fewer Current number . c. 43,277 units at which MC = $99 and MB = $99: (Click to select) More Fewer Current number . d. 82 units at which MC < MB: (Click to select) More Fewer Current number . e. 5 units at which MB < MC
Chapter 3 Part 2 Questions: Please use the following graph to answer questions 1-3. Units of Environmental Quality 5 4 3 1 4 6 B D E 8 10 12 Units of Power 1. What is the Marginal Rate of Substitution (MRS) from point A to point B. 2. What is the Marginal Rate of Substitution (MRS) from point A to point E. 3. Which combination(s) of goods give the consumer the highest level of happiness? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure.
4. Shifts in production possibilities Suppose the United Kingdom produces two types of goods: agricultural and capital. The following diagram shows its current production possibilities frontier for barley, an agricultural good, and cars, a capital good. Drag the production possibilities frontier (PPF) on the graph to show the effects of an immigration law that results in fewer workers entering the country. Note: Select either end of the curve on the graph to make the endpoints appear. Then drag one or both endpoints to the desired position. Points will snap into position, so if you try to move a point and it snaps back to its original position, just drag it a little farther. ? CARS (Thousands) 300 250 200 150 100 50 0 0 80 PPF 160 240 320 BARLEY (Millions of bushels) 400 480 6 PPF
Assume Tom is on budget constraint AC and the price of a hamburger is $4.00. Tom's monthly income is Tom's monthly budget constraint 40 A •D •E 20 Number of hamburgers per month 80 100 160 240 Number of hot dogs per month
5Look at the following production possibilities curve illustrating the possibilities in Sluggerville for producing bats and/or peanuts with the existing level of resources and technology. (a) Show a point U that would indicate unemployed resources in Sluggerville. (b) Draw a new curve B that illustrates the results of improved technology in the production of bats, but no change in the production efficiency of peanuts. (c) Show a point G that would indicate a point that is currently unattainable in the production of peanuts and bats in Sluggerville. Peanuts (metric tons) (s000'00L) sieg
Microeconomics - Budget Line (BL) Ethan is a collector of pokemon cards and stickers. He has $56 given by his dad to spend on his collection. The store sells them at $14 per pokemon cards and $7 for the stickers. 1. If Ethan spends all his money on pokemon cards, what is the maximum unit that he can purchase based on the given budget? 2. If Ethan spends all his money on stickers, what is the maximum unit that he can purchase based on the given budget? 3. Show in an illustration where pokemon cards is in the x-axis and y-axis is the sticker.
5. Opportunity cost and production possibilities Maria is a talented artist who sells hand-crafted goods on her website. Maria currently crafts and sells both crochet hats and baskets. She spends 8 hours a day working on crafts. The following table gives different daily output scenarios depending on how much of her time is spent on each good. Hours Crafting Produced Choice (Crochet hats) (Baskets) (Crochet hats) (Baskets) 0 0 10 16 18 19 BASKETS A B с D E 30 25 20 8 6 15 4 2 0 2 4 8 On the following graph, use the blue points (circle symbol) to plot Maria's initial production possibilities frontier (PPF). 4 3 2 1 0 Initial PPF ⠀3 New PPF
Marginal Analysis 5. Suppose you choose to eat 3 slices of pizza for dinner. An economist who is using marginal thinking to analyze your decision would be most interested in the answer to which of the following questions? A) Why did you eat 3 slices of pizza instead of 4 B) Why did you eat more than 1 slice of pizza? C) Why didn't you eat 5 slices of pizza? D) Why did you have pizza instead of a salad? 6. The additional benefits you would get if you had taken 1 more credit this semester is the: A total beneit of college credits B) marginal cest of a college credit total cost of college credits D) marginal benefit of a college credit/ 7. Which of these gives the best definition of "the margin" as economists use the term? A The value of the next best choice that you give up when you make a decision E The limit to an individual's ability to do complex mathematical calculations C) The dividing line between an action that is taken and an action that is not taker ) The difference between the…