GennyHoward_Unit1_Assignment_MAC - Macroeconomics Unit 1...

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Macroeconomics Genny Howard Unit 1 Assignment 2.) Describe some of the opportunity costs when you decide to do the following: a.) Attend college instead of taking a job. The opportunity cost of attending college instead of taking a job is what you would pay for tuition, books, and housing as well as the forgone income you would have made had you taken the job. b.) Watch a movie instead of studying for an exam. The opportunity cost of watching a movie instead of studying for an exam is the possibility of a lower grade on the exam, lower grade in the class, and possible failure of the course in which the exam is to be taken. c.) Ride the bus instead of driving your car. The opportunity cost of riding the bus instead of driving your car would be the price of bus fair, the loss of freedom to listen to music, the longer transit time, not being able to stop at your own will, and the loss of privacy. 5.) In the following examples, state how you would use the principle of marginal analysis to make a decision: a.) Deciding how many days to wait before doing your laundry. If I do a little bit of laundry everyday then I won’t have so much to do, but I will have t put aside time to do that every day by cutting out another daily activity. If I do laundry once a week, I will have to set aside an entire day to devote to doing laundry, but I will only be doing laundry once a week opposed to once a day. b.) Deciding how much library research to do before writing your term paper. If I only do a few hours’ worth of research, I might be missing out on truly
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This note was uploaded on 05/18/2010 for the course BU204 MACROECONO taught by Professor Joseruiz during the Spring '09 term at Kaplan University.

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GennyHoward_Unit1_Assignment_MAC - Macroeconomics Unit 1...

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