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?
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- Fall '19
- Economics, Rachel
