Econ 201-070 summer 2016 Instructor: Dwight Fitz Bramble Assignment 1 Due at the

Question

Econ 201-070 summer 2016 Instructor: Dwight Fitz Bramble Assignment 1 Due at the beginning of class, Monday July 18th, 2016 Assignment must be typed, hard copy. Please remember to put your name and student number on your assignment When asked in a television interview what she felt she was missing out on because she spent most of her time training for the Olympics, a rower answered, "A normal social life." She also revealed that she had given up a job that paid $20, 000 per year in order to train full-time. She was fortunate to receive a grant from sport Canada of $10, 000 per year, but this was not enough to cover all her expenses.

Explanation / Answer

a. The opportunity cost of "going for gold is ($20,000 + $16,000 - $10,000) = $26,000.

This is because she sacrifises $20,000 by quiting job and spent $16,000 on trainig.But grant is a thing that she earned.

b. The opportunity cost to Canada is $10,000, because they sacrifises $10,000 in the hope for the gold.

c. In general the amount of grant is the opportunity cost for sending this rower and other athletes to the olympics because it is the only amount then sacrifises in order to hope for the gold. So $10,000 is the opportunity cost for sending this rower and other athletes to the olympics.

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