This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: Problem Set 1 Due : February 3, 2009 1. Use the concept of opportunity cost to explain the following (write a few sentences for each statement): (a) More people choose to go to graduate school when the economy is poor. (b) More people choose to do their own home repairs when the economy is slow. (c) There are more parks in suburban areas that in urban areas. (d) Fewer students enroll in classes that start before 10:00 am. 2. Consider the following situation. You are interested in building a bird house. Materials cost $20. You have a job at the Campus book store that pays $8 per hour. It will take you 3 hours to complete the task. Calculate the explicit, implicit, and opportunity costs of building the birdhouse. 3. Use marginal analysis to describe the following choices. Include a graph and a description of the marginal benefits and marginal costs for each. (a) How many hours to study for Economics 102 (b) How many days to wait before doing laundry....
View Full Document
- Spring '08
- Opportunity Cost