Opportunity Cost Of Skiing
Any monetary costs from going skiing, as well as anything you lose by going skiing, wages or time studying.
The cost of skiing instead of going to the library to study is the costs associated with skiing along with the knowledge that could of be gained by going to the library. Since the cost of going to the library cannot be measured in monetary terms, it will vary from person to person. A person who needs to study for a final to be taken on Monday may give up more than someone who is going to the library to work on a project that is not due for a few weeks.
Page 18 question 4
The opportunity cost of spending the $100 now is the additional $5 I would earn in interest after 1 year.
Page 36 question 3
When new technology emerges that produces
cleansing the air cheaper, this suggests that for each level of business output, the air is created cleaner than it had been before, leading to a pivot of the assembly potentialities frontier round the horizontal intercept. However, the most quantity of business output which will be made is unchanged by this technology. Therefore, the vertical intercept of the assembly potentialities frontier will increase during this case, and therefore the horizontal intercept remains at its original location.
Page 36 question 6
a. Positive, because it does not supply an action to be taken. It is stating facts on the relationship between inflation and unemployment.
b. Positive, this is accepted economic theory. This statement is not trying to offer a solution based on a pre-determined agenda. It is simply stating economic theory.
c. Normative, the author of this particular statement is offering an opinion and a policy that he or she believes the bank of Ghana should undertake. This statement is not just a statement of fact, it goes beyond that.
d. Normative, offering an opinion of an action that the author of the statement believes should be taken.
e. Positive, a statement of widely accepted economic theory is being made. The author of the statement is not stating an action that should be taken. He is simply stating the prevailing economic thought on this subject.
The cost of skiing instead of going to the library to study is the costs associated with skiing along with the knowledge that could of be gained by going to the library. Since the cost of going to the library cannot be measured in monetary terms, it will vary from person to person. A person who needs to study for a final to be taken on Monday may give up more than someone who is going to the library to work on a project that is not due for a few weeks.
Page 18 question 4
The opportunity cost of spending the $100 now is the additional $5 I would earn in interest after 1 year.
Page 36 question 3
When new technology emerges that produces
cleansing the air cheaper, this suggests that for each level of business output, the air is created cleaner than it had been before, leading to a pivot of the assembly potentialities frontier round the horizontal intercept. However, the most quantity of business output which will be made is unchanged by this technology. Therefore, the vertical intercept of the assembly potentialities frontier will increase during this case, and therefore the horizontal intercept remains at its original location.
Page 36 question 6
a. Positive, because it does not supply an action to be taken. It is stating facts on the relationship between inflation and unemployment.
b. Positive, this is accepted economic theory. This statement is not trying to offer a solution based on a pre-determined agenda. It is simply stating economic theory.
c. Normative, the author of this particular statement is offering an opinion and a policy that he or she believes the bank of Ghana should undertake. This statement is not just a statement of fact, it goes beyond that.
d. Normative, offering an opinion of an action that the author of the statement believes should be taken.
e. Positive, a statement of widely accepted economic theory is being made. The author of the statement is not stating an action that should be taken. He is simply stating the prevailing economic thought on this subject.