Answers for Test _1 BA 315 Spring 07 April 24

Answers for Test _1 BA 315 Spring 07 April 24 - Name:_ BA...

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1 Name:_________________ Favorite Restaurant:____________ BA 315: Test #1, Spring 07 Lundquist College of Business University of Oregon Ali Emami Please answer all questions and make sure to show your calculations for questions marked with (*). Correct answers without showing calculations do not receive any credit. You are allowed to use a calculator to help with the calculations on the test. Do not talk during the test or use someone else’s paper or calculator as assistance this can result in a zero and a failing grade in the class. 1. [One point] I plan on going to a movie this evening instead of studying for an exam. The movie’s ticket cost $6.50 and I will spend $10 on soft drink and popcorn. Assuming that I do not drink or eat popcorn while studying for my exams, the total opportunity cost of going to movie: a) Is $6.50. b) Is what I could have purchased with the $6.50 plus the study time I forgo. c) Depends on how good the movie is. d) Is the forgone studying I could have done during the same time. e) Is what I could have purchased with the $16.50 plus the study time I forgo. 2*. [3 points] Assume that it takes 4 hours of labor time to paint a room and 6 hours to sand a floor. a) If all 24 hours were spent painting, how many rooms could be painted by one worker? rooms could be painted 24 6 4 = b) If a decision were made to sand two floors, how many painted rooms would have to be given up? Illustrate with a production-possibilities curve. (please label everything) ( ) ( ) sanding 2 floors means givingup: hr =12 hrs 12 hrs hrs for painting a room rooms 26 /4 3 ×⇒ = c) Suppose that a second worker became available. Illustrate the resulting change in production possibilities in above figure.
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This test prep was uploaded on 04/22/2008 for the course ECON 315 taught by Professor Aliemami during the Spring '08 term at University of Oregon.

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Answers for Test _1 BA 315 Spring 07 April 24 - Name:_ BA...

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