Question

Question 51 167 pts Paul is considering attending a concert. He estimates the ticket price will be $90, and the cost of driving to the concert and parking will total an additional $22. In order to attend the concert, Paul will have to take time off from his part-time job. He estimates that he will lose 4 hours at work, at a wage of $10.87 per hour. What is Paul's opportunity cost of attending the concert? Enter a number rounded to two decimal places Nect • Previous Net ved Submit W A х . 000 20 A & . 9 % 5 8 7 6 4 2 3 0 P т Y R W E к L G H F D S М. N V B

Answer 1

Solution:

1. Opportunity cost is the amount forgone in order to attend the concert + the cost incurred due to attending concert

Cost of attending concert = $90 + $22 = $112

Amount forgone = amount Paul would have earned if worked on part time for those 4 hours = 10.87*4 = $43.48

Thus, Opportunity cost of attending the concert = 43.48 + 112 = $155.48

2. Required reserve ratio is set by the central government for other banks as the ratio of total deposits that the banks are required to keep as reserved.

Thus, the correct option is (B).

3. Unemployment rate = number of unemployed/labor force

Labor force = unemployed workers + employed workers

We can find the number of employed workers by subtracting from entire population the other segments, so employed workers = 251m - 54m - 51m - 21m - 28m - 27m = 70m

So, labor force = 27m + 70m = 97m

Unemployment rate = 27/97 = 0.27835 or 27.84% (approximately)