Homework_1_Answers

Homework_1_Answers - Extra Credit Homework #1: ANSWERS (1)...

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Extra Credit Homework #1 : ANSWERS (1) Watch The Family Man in the Economics in the Movies workbook and answer the following questions ($1,000): What is the opportunity cost of moving to the city? What is the opportunity cost of staying in Jersey? ANSWER: Opportunity cost is the highest valued alternative that you give up when you choose a course of action. Therefore, the opportunity cost of moving to the city is the life that would be left behind in the suburbs (friends, schools, home). Likewise, if they stay in New Jersey they forgo the chance to live the city life (fancy apartment, nice restaurants, more fulfilling jobs). Jack wants a “perfect life.” Do you think that this is possible? ANSWER: Perfection is too costly. Economic teaches us to weigh the costs and benefits. Moreover, perfection is always too expensive. As an alternative example consider the price of reducing pollutants to zero. To accomplish this automobiles could not use gasoline, many industrial processes would be eliminated, and much of
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Homework_1_Answers - Extra Credit Homework #1: ANSWERS (1)...

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