Question

1. Problems and Applications Q1 Which of the following are trade-offs faced by a family deciding whether to buy a new car? Check all that apply. An increase in the family's car payment means the family will be unable to afford a vacation A newer model offers better protection and functions but is more expensive than an older model The vehicle is available in several colors. Which of the following are trade-offs faced by a member of Congress deciding how much to spend on national parks? Check all that apply. National parks are essential to protecting wildlife from extinction. Money spent on national parks benefits park visitors, but alternatively the money could be spent on highways to benefit drivers Dog ownership will surge as a result of better national parks. Which of the following are trade-offs faced by a company president deciding whether to open a new factory? Check all that apply. The firm can either pay out more of its profit to shareholders or earn additional profit next year by increasing production. The firm can either open a new factory or upgrade existing equipment. The firm can either open a new factory or expand its current factory. Which of the following are trade-offs faced by a professor deciding how much time to spend preparing for class? Check all that apply. The professor likes the students a lot. The professor has taught the same subject for 4 years. The better the lecture, the better the professor's chances of tenure, but time spent preparing the lecture decreases the time the professor has available to work on research Which of the following are trade-offs faced by a recent college graduate deciding whether to go to graduate school? Check all that apply. Graduate school means fewer years of on-the-job experience. Many of her friends decide to go to graduate school. If she goes to graduate school, she won't be able to start a new job and repay her existing student loans.

Answer 1

1) a. An increase in the family's car payment means the family will be unable to afford a vacation.

​​​​​2) b. Money spent on national parks benefit park visitor's,but alternatively the money could be spent on highways to benefit drivers.

3) a. The firm can either pay out more of it's profit to the shareholders or earn additional profit next year by increasing production.

b. The firm can either open a new factory or upgrade existing equipment.

4) c. The better the lecture,the better the professor's chances of tenure,but time spent preparing the lecture decreases the time the professor has available to do something else or to work on research.

5) c. If she goes to graduate school, she won't be able to start a new job and repay her existing student loans.