4 (Opportunity Cost) You can either spend Spring Break working at home for $80 p
ID: 1144025 • Letter: 4
Question
4 (Opportunity Cost) You can either spend Spring Break working at home for $80 per day for five days or go to Florida for the week. If you stay home, your expenses will total about $100. If you go to Florida, the airfare, hotel, food and miscellaneous expenses will total about $700. What's your opportunity cost of going to Florida? (Hint: Answers may vary) 5. (Shifting Production Possibilities) Determine whether each of the following would cause the economy's PPF to shift inward, outward, or not at all: a. An increase in average length of annual vacations b. An increase in immigration 6. (Production Possibilities) Under what conditions would an economy be operating inside its PPF? On its PPF? Outside its PPF? 7. (Specialization and Exchange) Explain how the specialization of labor can lead to increased productivity. 8. What are your future plans? Do you think learning economics will play an important role in achieving your goals in the ls ine near future? Briefly discuss.Explanation / Answer
Answer 5:- A:- An increase in average length of annual vacations:- PPF will shift inward due to reduced productivity.
B:- An increase in immigration:- PPF will shift outward as more workers will produce greater quantities.
Answer 6:- In the events where some resources are idle (unemployed) or if resources are
allocated inefficiently, the economy tends to operate inside PPF.
On the other hand, if all resources are employed efficiently, it will reflect that economy is working on PPF.
It is not feasible for any economy to operate outside of PPF as if the economy had to operate outside of PPF, it will show unattainable combinations, given the resources, rules of the game, and the technology available
Answer 7:- When manpower is hired to do some specific tasks, they become an expert in doing those tasks and thus takes lesser time to execute those activities and thus attain greater efficiency. Om the other hand, if there are some people who do everything, it will reduce their productivity and will take more time.
Answer 8:- I am planning to work in an MNC at the managerial position. Economic is really indispensable for my future plans and understanding the concepts of economics will help me in making effective and informed decision in future.
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