1.5 - c. The opportunity cost of riding the bus instead of...

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Charmaine George pg 18 1) a- People usually exploit opportunities to make themselves better off. b- Resources are scarce. c- Markets usually lead to efficiency. d- Marginal decision/trade-off e- Resources should be used efficiently. f- Opportunity cost g- Markets move toward equilibrium. h- There are gains from trade. i- When markets don't achieve efficiency, government intervention can increase social welfare. 2) a. The opportunity cost of going to college instead of taking a job would be that you would have to pay for tuition, books, supplies and housing. You would also have to give up the income that you could get from a job. b. The opportunity cost of watching a movie instead of studying for an exam would be the price of the tickets/price of the movie. You would also have to give up the time used to study for the exam.
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Unformatted text preview: c. The opportunity cost of riding the bus instead of driving your car, would that you would have to pay for the bus fare (though since price of gas is so high I don't really see that as a bad thing, unless you already had a full tank). You would also have to give up your extra time and independence since the bus as to make frequent stops, and has to cater to all of the passengers. pg 179 6) a. b. increasing marginal cost Carla decreasing marginal cost Amy constant marginal cost Bill 8) a.1 class per week. b. No, Georgia would not be willing to take the same number of classes as Lauren, since her optimal number is 2 thus she would be suffering a lost....
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1.5 - c. The opportunity cost of riding the bus instead of...

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