Question

Possibility comes Talole 2-1 . Reforring to Tab 2 A student has b atons hours to prepare for two different exams this attomoon. The above table shows altesanve posable exam scores with three alternative use of the students time. Tb opportunity cost of scoring. 02 on the economics esam rather than

Answer 1

1. If the student studies so that he gets 82 in economics, he will get a 78 in statistics. At the same time, if he prepares to get 73 in economics, he will get 84 in statistics. So, the opportunity cost of studying to get 82 in economics is 84-78= 6 marks in statistics.

10. The opportunity cost is 2 since 2 B-1s can be produced when stealth bombers' production is 7. 0 B-1s are left when stealth bombers' production rises to 10. No matter how much further the production of the stealth bombers increases, the opportunity cost will remain 2 only as B-1s were already 0 at 10 stealth bombers.

11. For products made from some raw material, GDP only includes incremental value that gets added by the new product. For example, In our case, while 600 dollars worth of trees will be part of GDP, not all of $525 worth of lumber would be. That lumber already includes 400 dollars of trees. So the incremental value is only 125 dollars. This way we can calculate the whole GDP, which is

600+(525-400)+(375-200)

=600+125+175

=900.