ANSWERS TO HOMEWORK WEEK ONE EC141

ANSWERS TO HOMEWORK WEEK ONE EC141 - ANSWERS TO HOMEWORK...

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ANSWERS TO HOMEWORK WEEK ONE EC141 CHAPTER 1 3. (a) normative (b) positive (c) normative 6. (a) Tuition (which could have been spent on other things), forgone wages, study time, and so on. (b) All the money (gas, depreciation of the car, and so on) could have been spent on other items; time spent en route could have been used for other activities. (c) A better ‘grade, no headache, perhaps admission to a better grad school, a higher-paying job. He has traded off an investment in human capital (staying in to study) for present consumption (going to the party). (d) The other goods and services that Annie could buy with $200 (e) The $1 million could have been invested in other profit-making ventures or projects, or it could have been put in the bank or loaned to someone else with interest. (f) From the standpoint of the store, Alex is free. From Alex’s standpoint, he gives up other uses of time and wages that could be earned elsewhere. CHAPTER 1 APPENDIX 1.
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ANSWERS TO HOMEWORK WEEK ONE EC141 - ANSWERS TO HOMEWORK...

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