Econ 211 Homework 1 Fall 2009-1

Econ 211 Homework 1 Fall 2009-1 - Rice University ECON 211,...

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1 Rice University ECON 211, Spring 2009 Problem Set 1 Due on Tuesday, September 8 Answer questions on the problem sheet. 1. ( 25 pts. ) You are trying to decide whether to go Padre Island for the Labor Day weekend. The ticket is $200 and your share of the room is $100. However, your host will feed you so you will spend no money on food. However, if you go to Padre Island you will lose $120 (after tax) for one weekend day that you will miss work and you will save $30 in meals. If you had stayed on campus, you would have gone to the movies and spent $20. What is the opportunity cost of going to Padre Island? Write down the cost measured in money. Item Benefit Cost Net cost is _______________________________
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2 2. ( 25 pts. ) Tom is stranded on a desert island and can either fsh or harvest dates. Six points on his production possibilities Frontier are given in table below. Dates gathered ±ish caught A 54 0 B 50 1 C 42 2 D 32 3 E 20 4 ± 0 5 a) Plot these possibilities on a “Dates gathered/±ish caught” grid, label the points, and
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Econ 211 Homework 1 Fall 2009-1 - Rice University ECON 211,...

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