a) Trade-offs are important part of economic decision making. You are supposed to Analyze and explain any three trade-offs that you face in your life.   b) You plan to study on weekend and your friends ask you to go to a farm house with them. What do you think is the true cost of spending your weekend on a farmhouse with friends?    c) You plan to spend your weekend working at your father’s superstore for a wage, but your friends ask you go play cricket at the weekend. What do you think is the true cost of spending your weekend playing cricket with friends?

Suppose you are scheduled to work at your job for 4 hours Friday night, where you make $10.00 per hour. However, once Friday arrives you decide to "call in sick" so you can go to the movies with your friends. At the movies, you spend $10 on a ticket and $15 on refreshments. How much did the night at the movies cost you?

Janice really likes potatoes. Potatoes cost $1.00 per pound, and she has $5.00 that she could possibly spend on potatoes or other items. Suppose she feels that the first pound of potatoes is worth $1.50, the second pound is worth $1.14, the third pound is worth $1.05, and all subsequent pounds are worth $0.30. Instructions: Enter your answers as whole numbers. a. How many pounds of potatoes will she purchase? b. What if she only had $3.00 to spend?

Janice really likes potatoes. Potatoes cost $1.10 per pound, and she has $6.00 that she could possibly spend on potatoes or other items. Suppose she feels that the first pound of potatoes is worth $1.50, the second pound is worth $1.14, the third pound is worth $1.05, and all subsequent pounds are worth $0.30. Instructions: Enter your answers as whole numbers. a. How many pounds of potatoes will she purchase? pound(s) of potatoes b. What if she only had $3.00 to spend? pound(s) of potatoes

Do consumers always make rational consumer decisions when buying economic goods?

You go to the movieplex where movies ordinarily cost $9. You are intending to see a movie for which you have a $3 off coupon, which is good for only that movie at that time. However, when you get there you see a friend who asks if you would rather see a new release. Both movies start and end at the same time. If you decide to see the new release with your friend, what is your opportunity cost? a. The amount you value the first movie + $9 b. $3 c. The amount you value the first movie + $3 d. $9

Katie loves swimming. Every afternoon, she visits the local swimming pool for a swim. The entry cost to the pool costs Katie $10 but she can swim for as long as she wants. Once she has entered the pool and paid the fee, Katie wonders how many hours should she spend swimming if she were to think like an economist. She expects to gain an incremental benefit of $21 from the first hour of swimming, then gains subsequent incremental benefits of $17 from the second, $11 from the third and $4 from the fourth. For every hour spent swimming, it will cost Katie $6 as she could have spent the time doing her homework. In determining how many hours Katie should be swimming, the $10 entry fee to the pool is a/an Type A for Average cost, M for Marginal cost, S for Sunk cost or O for Opportunity cost. Using marginal analysis, what is the optimal amount of hours Katie should spend swimming? The maximum surplus for Katie, from spending the number of hours you found in part b, is $ Answer to the nearest…

.  Your best friend has just purchased a new Sport Utility Vehicle (SUV).  “These things are great.” he says.  “They can get you to the private unspoiled places no one else can reach.  On the road, it’s nice because you sit so high and can see over the other cars.”  Your friend thinks everyone should buy an SUV.  Is there an error in his reasoning?  If so, what is it? (Use economics terms).

Consider the following two situations. (i) You purchase a $10 movie ticket in advance over the Internet, but when arriving at the theater, you realize that you lost the ticket. The only way to see the movie is to purchase a new ticket.(ii) On the way to seeing a movie, you drop a $10 bill. You still can afford the movie, but you have lost the $10. How should you, a rational person, respond to the two situations?   You should still see the movie in both situations. You should respond the same way to each situation, whether it is to see the movie or not. In each situation, you should not see the movie. In the first situation, you should skip the movie; in the second, you should still see the movie.