a)
The question requires us to determine the best suited example of
a)
Answer to Problem 3CYU
Yes. The increased time spent on new job is an opportunity cost.
Explanation of Solution
The increased time spent on new job will bring the benefits (either in monetary terms or some extra perks) to the person. It will incur if the person will accept the new job. The benefit the person would receive from spending that increased time doing some alternative work is an opportunity cost of the new job.
Opportunity cost is the next best alternative option that a person chooses. It is result of choosing one best option while forgoing next best alternative option.
b)
The question requires us to determine the best suited example of opportunity cost.
b)
Answer to Problem 3CYU
Yes. The salary from old job is an opportunity cost of new job.
Explanation of Solution
Opportunity cost is the best foregone option. In order to get new job at higher salary the person has to give up his current job. The salary he is getting from current job is the best alternative option a person can give up to get a new job.
So, current salary that is, $45,000 is an opportunity cost of the new job.
c)
The question requires us to determine the best suited example of opportunity cost.
c)
Answer to Problem 3CYU
No. a more spacious office at new job is not an opportunity cost of new job.
Explanation of Solution
A more spacious office is something that comes under an additional perks of new job and it does not involve giving up of something else to get this.
So, more spacious office is not an opportunity cost of new job.
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- Draw the IS-LM diagram at equilibrium and use it to show how one or both of the curves change based on the following exogenous changes. An increase in taxes. An increase in the money supply An increase in government purchasesarrow_forwardDon't use Ai. Answer in step by step with explanation.arrow_forwardcorospond to this message. Gross Domestic Product (GDP) represents the total value of all goods and services produced by a country. The news reporter shows excitement because rising GDP signifies positive economic performance. Consumer spending has increased while businesses expand and new job opportunities become available. If the GDP rises, your delivery business will likely handle more packages as consumer purchasing increases. The increase in business activity will lead to more opportunities for your company to generate higher profits. You may need to take action by hiring additional staff and purchasing extra delivery vehicles or finding ways to improve your operation speed and efficiency to meet increased demand.arrow_forward
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