3 the night before an economics test you decide to go

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3. The night before an economics test, you decide to go to the movies instead of staying home and working your MyEconLab Study Plan. You get 50 percent on your test compared with the 70 percent that you normally score. a. Did you face a tradeoff? b. What was the opportunity cost of your evening at the movies? 4. Explain what it means to choose at the margin and illustrate with three choices at the margin that you have made today. 5. Cost of Sochi Winter Olympics The Russian government spent $6.7 billion on Olympic facilities and $16.7 billion upgrading Sochi area infrastructure. Sponsors spent $27.6 billion on hotels and facilities hoping to turn Sochi into a year-round tourist magnet. Was the opportunity cost of the Sochi Olympics $6.7, $23.4, or $51 billion? Explain your answer. Source: The Washington Post, February 11, 2014 sminar 1 Answer Section MULTIPLE CHOICE 1. ANS: C PTS: 1 2. ANS: A PTS: 1
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3. ANS: B PTS: 1 4. ANS: E PTS: 1 5. ANS: A PTS: 1 6. ANS: C PTS: 1 7. ANS: B PTS: 1 8. ANS: B PTS: 1 9. ANS: B PTS: 1 10. ANS: C PTS: 1 11. ANS: D PTS: 1 12. ANS: B PTS: 1 13. ANS: B PTS: 1 SHORT ANSWER 1. ANS: Whatever must be given up to obtain some item it its opportunity cost. Basically, this would be a person's second choice. The opportunity cost of a person attending college is the value of the best alternative use of that person's time, as well as the additional costs the person incurs by making the choice to attend college. For most students this would be the income the student gives up by not working plus the cost of tuition and books, and any other costs they incur by attending college that they would not incur if they chose not to attend college. A student's opportunity cost of coming to class was the value of the best opportunity the student gave up. (For most students, that seems to be sleep.) PTS: 1 2. ANS: a.The statement is normative and cannot be tested.
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