Chapter1 Questions for Review

Chapter1 Questions for Review - Questions for Review 1....

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Unformatted text preview: Questions for Review 1. Examples of trade-offs include time trade-offs (such as studying one subject over another or studying at all compared to engaging in social activities) and spending trade-offs (such as whether to use your last 15 dollars to purchase a pizza or to buy a study guide for that tough economics course). 2. The opportunity cost of seeing a movie includes the monetary cost of admission plus the time cost of going to the theater and attending the show. The time cost depends on your next best use of that time; if it is staying home and watching TV, the time cost may be small, but if it is working an extra three hours at your job, the time cost is the money you could have earned. 3. The marginal benefit of a glass of water depends on your circumstances. If you have just run a marathon or you have been walking in the desert sun for three hours, the marginal benefit...
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This note was uploaded on 11/09/2011 for the course ECO 6789 taught by Professor Hu during the Spring '11 term at Campbell.

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Chapter1 Questions for Review - Questions for Review 1....

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