1. Assume you have just received your college degree. You are excited to be finished because next month you will be starting a new job with a high salary. With this new change in life, you have decided to buy your first home. List 3 opportunity costs of buying a home and explain each cost in 2-4 sentences. Remember that opportunity costs are the things that you give up by choosing to buy a home. 2. Rachel has decided to start her own business – Rachel’s Sweet Treats – baking and selling cakes and cookies. Choice Cakes Cookies A 0 8 B 4 3 C 6 0 Use the table above to answer the following questions: Draw a production possibilities curve to showcase the options for Rachel. Feel free to use a Word or Excel document to create the graph. Determine the opportunity costs for a move from B to C. Remember that to make more cakes, you have to give up cookies. How many cookies would you have to give up to make 6 cakes instead of 4 cakes?
You've reached the end of your free preview.
Want to read all 4 pages?
- Fall '19
- Economics, Rachel