Relevance of opportunity cost .

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Answer 1

Question

Chapter 2, Problem 1.1P

To determine

Relevance of opportunity cost.

Expert Solution & Answer

Explanation of Solution

Option (a): The opportunity cost of going home is, lost the time that can be used for other purpose like studying.

Option (b): Opportunity cost of riding bicycle 20 miles every day is, alternative use of that time.

Option (c): Opportunity cost of Federal government is, value of other goods and services that the government can buy with that tax revenue.

Option (d): The opportunity cost of foreign government is, value of other goods and services that the government can buy with the subsidy amount.

Option (e): Opportunity cost of upgrading balcony is, alternative use of that money.

Economics Concept Introduction

Opportunity cost: Opportunity cost is the best alternative costs that forgo, or give up, when a decision or choice has to be taken.

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Without Trade Production Consumption With Trade Production Everglades Denali Shorts (Millions of Almonds Shorts Almonds pairs) (Millions of pounds) (Millions of pairs) (Millions of pounds) 12 16 5 30 12 16 5 30 64 0 0 20 Trade action Imports 13 ▼ Exports 39▾ Imports 13 ▼ Exports 39 Consumption Gains from Trade Increase in Consumption

Practice: Their labor forces are each capable of supplying four million hours per week that can be used to produce shorts, almonds, or some combination of the two. Country Shorts Almonds (Pairs per hour of labor) (Pounds per hour of labor) Everglades 4 16 Denali 5 10 Suppose that initially Denali uses 1 million hours of labor per week to produce shorts and 3 million hours per week to produce almonds, while Everglades uses 3 million hours of labor per week to produce shorts and 1 million hours per week to produce almonds. As a result, Everglades produces 12 million pairs of shorts and 16 million pounds of almonds, and Denali produces 5 million pairs of shorts and 30 million pounds of almonds. Assume there are no other countries willing to engage in trade, so, in the absence of trade between these two countries, each country consumes the amount of shorts and almonds it produces. Everglades's opportunity cost of producing 1 pair of shorts is4 pounds of…

Answer 2

Question

Chapter 2, Problem 1.1P

To determine

Relevance of opportunity cost.

Expert Solution & Answer

Explanation of Solution

Option (a): The opportunity cost of going home is, lost the time that can be used for other purpose like studying.

Option (b): Opportunity cost of riding bicycle 20 miles every day is, alternative use of that time.

Option (c): Opportunity cost of Federal government is, value of other goods and services that the government can buy with that tax revenue.

Option (d): The opportunity cost of foreign government is, value of other goods and services that the government can buy with the subsidy amount.

Option (e): Opportunity cost of upgrading balcony is, alternative use of that money.

Economics Concept Introduction

Opportunity cost: Opportunity cost is the best alternative costs that forgo, or give up, when a decision or choice has to be taken.

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Answer 3

Question

Chapter 2, Problem 1.1P

To determine

Relevance of opportunity cost.

Expert Solution & Answer

Explanation of Solution

Option (a): The opportunity cost of going home is, lost the time that can be used for other purpose like studying.

Option (b): Opportunity cost of riding bicycle 20 miles every day is, alternative use of that time.

Option (c): Opportunity cost of Federal government is, value of other goods and services that the government can buy with that tax revenue.

Option (d): The opportunity cost of foreign government is, value of other goods and services that the government can buy with the subsidy amount.

Option (e): Opportunity cost of upgrading balcony is, alternative use of that money.

Economics Concept Introduction

Opportunity cost: Opportunity cost is the best alternative costs that forgo, or give up, when a decision or choice has to be taken.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 2, Problem 1.1P

To determine

Relevance of opportunity cost.

Expert Solution & Answer

Explanation of Solution

Option (a): The opportunity cost of going home is, lost the time that can be used for other purpose like studying.

Option (b): Opportunity cost of riding bicycle 20 miles every day is, alternative use of that time.

Option (c): Opportunity cost of Federal government is, value of other goods and services that the government can buy with that tax revenue.

Option (d): The opportunity cost of foreign government is, value of other goods and services that the government can buy with the subsidy amount.

Option (e): Opportunity cost of upgrading balcony is, alternative use of that money.

Economics Concept Introduction

Opportunity cost: Opportunity cost is the best alternative costs that forgo, or give up, when a decision or choice has to be taken.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 2, Problem 1.1P

To determine

Relevance of opportunity cost.

Expert Solution & Answer

Explanation of Solution

Option (a): The opportunity cost of going home is, lost the time that can be used for other purpose like studying.

Option (b): Opportunity cost of riding bicycle 20 miles every day is, alternative use of that time.

Option (c): Opportunity cost of Federal government is, value of other goods and services that the government can buy with that tax revenue.

Option (d): The opportunity cost of foreign government is, value of other goods and services that the government can buy with the subsidy amount.

Option (e): Opportunity cost of upgrading balcony is, alternative use of that money.

Economics Concept Introduction

Opportunity cost: Opportunity cost is the best alternative costs that forgo, or give up, when a decision or choice has to be taken.

Answer 6

Chapter 2, Problem 1.1P

To determine

Relevance of opportunity cost.

Expert Solution & Answer

Explanation of Solution

Option (a): The opportunity cost of going home is, lost the time that can be used for other purpose like studying.

Option (b): Opportunity cost of riding bicycle 20 miles every day is, alternative use of that time.

Option (c): Opportunity cost of Federal government is, value of other goods and services that the government can buy with that tax revenue.

Option (d): The opportunity cost of foreign government is, value of other goods and services that the government can buy with the subsidy amount.

Option (e): Opportunity cost of upgrading balcony is, alternative use of that money.

Economics Concept Introduction

Opportunity cost: Opportunity cost is the best alternative costs that forgo, or give up, when a decision or choice has to be taken.

Answer 7

Chapter 2, Problem 1.1P

To determine

Relevance of opportunity cost.

Answer 8

Expert Solution & Answer

Explanation of Solution

Option (a): The opportunity cost of going home is, lost the time that can be used for other purpose like studying.

Option (b): Opportunity cost of riding bicycle 20 miles every day is, alternative use of that time.

Option (c): Opportunity cost of Federal government is, value of other goods and services that the government can buy with that tax revenue.

Option (d): The opportunity cost of foreign government is, value of other goods and services that the government can buy with the subsidy amount.

Option (e): Opportunity cost of upgrading balcony is, alternative use of that money.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Opportunity cost: Opportunity cost is the best alternative costs that forgo, or give up, when a decision or choice has to be taken.

Answer 12

Ch. 2 - Prob. 1.1P Ch. 2 - Prob. 1.2P Ch. 2 - Prob. 1.3P Ch. 2 - Prob. 1.4P Ch. 2 - Prob. 1.5P Ch. 2 - Prob. 1.6P Ch. 2 - Prob. 1.7P Ch. 2 - Prob. 1.8P Ch. 2 - Prob. 1.9P Ch. 2 - Prob. 1.10P

Relevance of opportunity cost .

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Relevance of opportunity cost.

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