To post or not to post? Every day we are faced with a myriad of decisions, from what to have for breakfast, to which route to take to class, to the more complex—“Should I double major and add possibly another semester of study to my education?" Our response to these choices depends on the information we have available at any given moment. Economists call this "imperfect" because we rarely have all the data we need to make perfect decisions. Despite the lack of perfect information, we still make hundreds of decisions a day. Now we have another avenue in which to gather information social media. Outlets like Facebook and Twitter are altering the process by which we make choices, how we spend our time, which movies we see, which products we buy, and more. How many of you chose a university without checking out its Facebook page or Twitter stream first for information and feedback? As you will see in this course, what happens in economics is affected by how well and how fast information disseminates through a society, such as how quickly information travels through Facebook. "Economists love nothing better than when deep and liquid markets operate under conditions of perfect information,” says Jessica Irvine, National Economics Editor for News Corp Australia. i. ii. iii. Define economics and the role of scarcity in decision-making. Explain opportunity cost in context of the excerpt above. Provide two examples of an opportunity cost. In each of your examples of opportunity cost, how can you determine the actual cost to an individual numerically? How can individuals make better decisions using opportunity cost based on this numerical value?
To post or not to post? Every day we are faced with a myriad of decisions, from what to have for breakfast, to which route to take to class, to the more complex—“Should I double major and add possibly another semester of study to my education?" Our response to these choices depends on the information we have available at any given moment. Economists call this "imperfect" because we rarely have all the data we need to make perfect decisions. Despite the lack of perfect information, we still make hundreds of decisions a day. Now we have another avenue in which to gather information social media. Outlets like Facebook and Twitter are altering the process by which we make choices, how we spend our time, which movies we see, which products we buy, and more. How many of you chose a university without checking out its Facebook page or Twitter stream first for information and feedback? As you will see in this course, what happens in economics is affected by how well and how fast information disseminates through a society, such as how quickly information travels through Facebook. "Economists love nothing better than when deep and liquid markets operate under conditions of perfect information,” says Jessica Irvine, National Economics Editor for News Corp Australia. i. ii. iii. Define economics and the role of scarcity in decision-making. Explain opportunity cost in context of the excerpt above. Provide two examples of an opportunity cost. In each of your examples of opportunity cost, how can you determine the actual cost to an individual numerically? How can individuals make better decisions using opportunity cost based on this numerical value?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:To post or not to post? Every day we are faced with a myriad of decisions, from what to have for
breakfast, to which route to take to class, to the more complex—"Should I double major and add
possibly another semester of study to my education?" Our response to these choices depends on
the information we have available at any given moment. Economists call this "imperfect"
because we rarely have all the data we need to make perfect decisions. Despite the lack of perfect
information, we still make hundreds of decisions a day. Now we have another avenue in which to
gather information social media. Outlets like Facebook and Twitter are altering the process by
which we make choices, how we spend our time, which movies we see, which products we buy,
and more. How many of you chose a university without checking out its Facebook page or
Twitter stream first for information and feedback? As you will see in this course, what happens
in economics is affected by how well and how fast information disseminates through a society,
such as how quickly information travels through Facebook. "Economists love nothing better than
when deep and liquid markets operate under conditions of perfect information," says Jessica
Irvine, National Economics Editor for News Corp Australia.
i.
ii.
iii.
iv.
V.
Define economics and the role of scarcity in decision-making.
Explain opportunity cost in context of the excerpt above. Provide two examples of an
opportunity cost.
In each of your examples of opportunity cost, how can you determine the actual cost
to an individual numerically? How can individuals make better decisions using
opportunity cost based on this numerical value?
Draw and graph one production possibilities curve that demonstrates your example.
Be sure to label the y-axis, x-axis, PPC curve, and how to identify the opportunity
cost in the graph.
In your graph, explain and show an increasing opportunity cost.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education