Macroeconomics
13th Edition
ISBN: 9781337617390
Author: Roger A. Arnold
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 2, Problem 5QP
(a)
To determine
Example of constant
(b)
To determine
Example of increasing opportunity cost.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Hello, can you help by giving me an example to illustrate each of the following:
(a) constant opportunity costs :
b) increasing opportunity costs:
Using the diagram below, which of the following would not entail an opportunity cost? (more than one option may be
possible). Multiple answers: Multiple answers are accepted for this question Select one or more answers and submit.
For keyboard navigation... SHOW MORE ✓a A movement from A to B. b A movement from A to C. c A movement from
C to B. d A movement from B to C. e A movement from C to A.
1. Use the graph below to answer the following questions.
a) If Alison is currently growing 80 bunches of kale per period, how many
radish bunches is she growing? Assume that resources are fully utilized.
b) What is the opportunity cost of one bunch of radishes?
c) What is the opportunity cost of one bunch of kale?
d) If Alison is currently producing 30 bunches of radishes, what is the
opportunity cost of producing another 20 bunches of radishes?
e) Is it possible for Alison to produce 120 bunches of kale and 30 bunches of
radishes?
f)
If Alison is producing 60 bunches of radishes and 30 bunches of kale, is
she fully utilizing her resources?
g) Is the opportunity cost of this PPF constant?
Kale (bunches)
180
160
140
120
100
20
40
60
Radishes (bunches)
"L'PL
80
100
Chapter 2 Solutions
Macroeconomics
Ch. 2.1 - Prob. 1STCh. 2.1 - Prob. 2STCh. 2.1 - Prob. 3STCh. 2.1 - Prob. 4STCh. 2 - Prob. 1QPCh. 2 - Prob. 2QPCh. 2 - Prob. 3QPCh. 2 - Prob. 4QPCh. 2 - Prob. 5QPCh. 2 - Prob. 6QP
Ch. 2 - Prob. 7QPCh. 2 - Prob. 8QPCh. 2 - Prob. 9QPCh. 2 - Prob. 10QPCh. 2 - Prob. 11QPCh. 2 - Prob. 12QPCh. 2 - Prob. 13QPCh. 2 - Prob. 1WNGCh. 2 - Prob. 2WNGCh. 2 - Prob. 3WNGCh. 2 - Prob. 4WNGCh. 2 - Prob. 5WNGCh. 2 - Prob. 6WNGCh. 2 - Prob. 7WNGCh. 2 - Prob. 8WNGCh. 2 - Prob. 9WNGCh. 2 - Prob. 10WNGCh. 2 - Prob. 11WNGCh. 2 - Prob. 12WNG
Knowledge Booster
Similar questions
- 2. For each of the following, identify the full cost (meaning opportunity cost) involved: a. Aaron spends $200 on basketball shoes. b. Your friend takes you to the movies and pays for your ticket and concessions. c. James decides to go to a club and stays out all night before his economics exam. d. After signing up for a free trial of HBOMax, Jason watches 3 episodes of House of the Dragon.arrow_forwardIn the context of the production possibilities frontier, opportunity cost can be measured by the A) ratio of the costs of the two goods being produced. B) slope of the frontier. C) ratio of the amounts of the two goods being produced. D) amount of labor needed to produce the goods and services.arrow_forwardCould you please provide an example (article) of the opportunity cost in real life and explain in economic terms why opportunity cost is in that particular situation?arrow_forward
- How do you define opportunity costarrow_forwardWhat is the difference between opportunity cost and trade-off? Please explain.arrow_forwardUsing your own words, describe the law of increasing opportunity costs. Be sure to explain why this phenomenon occurs and how it helps to contribute to the shape of the production possibilities frontier.arrow_forward
- Consider the following production possibilities table that shows different combinations of two goods that can be produced with given resources: Shirts Corn A 0 20 B 10 15 C 20 10 D 30 5 E 40 0 Based on the table, which is true? Group of answer choices Opportunity cost is increasing Opportunity cost is constantarrow_forwardLike a good economist, you calculated the cost of getting your college degree, including the opportunity cost. Suppose that at your university, you will pay $10,000 each year for tuition, $2,500 each year for textbooks, and $8,000 per year for room and board. Before you left for college, your boss at your high- school job offered you a job paying $20,000 per year. Assume that if you decided not to go to college, your parents would let you live at home for free.arrow_forwardLike a good economist, you calculated the cost of getting your college degree, including the opportunity cost. Suppose that at your university, you will pay $15,000 each year for tuition, $3,000 each year for textbooks, and $8,000 per year for room and board. Before you left for college, your boss at your high-school job offered you a job paying $15,000 per year.Assume that if you decided not to go to college, your parents would let you live at home for free.Including the opportunity cost, what is the cost of attending four years of college? $arrow_forward
- Based on the photograph of the question 2 section. if the economy is currently producing 10 bags of snacks, what is the opportunity cost per unit of producing two more bags of tea?arrow_forwardTo the following questions, provide an answer that includes identifying the type of opportunity cost. 1. You have a ticket to go to a concert by one of your favorite groups, the Hives, which you cannot resell. However, you can buy a ticket for $30 to attend a talk by Steven Colbert, which is at the same time as the concert. You are willing to pay up to $90 to hear Colbert. Given that there are no other costs involved in attending either event, what is your opportunity cost of attending the Hives concert? 2. The common adage “There’s no such thing as a free lunch”3. A company buys a machine worth $500 that can be sold in one year for $400. Alternatively, the company can instead save the $500 at an annual interest rate of 5%. Discuss the opportunity cost of buying the machine.arrow_forwardExplain the following in not more than half a page Opportunity cost. Production possibility frontier. scarcityarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co