Question

When considering whether or not to consume a second slice of cake, an individual is following marginal thinking if she compares the total cost of consuming both the first and second slices with their total benefit before making a decision. True False The opportunity cost of a decision is the value of the best foregone alternative. True False If Xavier gives up a job in which he earns $23,000 per year in order to go to college full time, his foregone income is part of the opportunity cost of going to college. True False If Xavier gives up a job in which he earns $23,000 per year in order to go to college full time, his foregone income is part of the opportunity cost of going to college. True False

If Xavier gives up a job in which he earns $23,000 per year in order to go to college full time, his foregone income is part of the opportunity cost of going to college.

True

False

A country has a comparative advantage in the production of DVD players if it can produce DVD players at a lower opportunity cost than others.

True

False

Answer 1

1. When considering whether or not to consume the second slice of cake, an individual is following marginal thinking if she compares the total cost of consuming both the first and second slices with their total benefit before making a decision.

True

Since the utility derived from consuming the first slice of cake would be more when compared to the consumption of the second slice of cake

2. The opportunity cost of a decision is the value of the best foregone alternative.

True

Opportunity cost is the cost of the next best alternative. It is the alternative which we forego.

3. If Xavier gives up a job in which he earns $23,000 per year in order to go to college full time, his foregone income is part of the opportunity cost of going to college.

True

He foregoes his income of $23,000 to gain more education. Hence foregoing the job is a part of the opportunity cost.

4. A country has a comparative advantage in the production of DVD players if it can produce DVD players at a lower opportunity cost than others.

False

A country would have a comparative advantage in the production of DVD players only if it can reduce its total cost both variable and fixed for the production of DVD players.