Microeconomics: Chapter 2 Study Plan

For each of the​ following, describe some of the potential opportunity costs​: Staying up all night to watch season 5 of Game of Thrones.

(All of the Above) -Loss of focus during daytime tasks -Time spent studying the next day after you slept in -Time spent sleeping

For each of the​ following, describe some of the potential opportunity costs​: The federal government using tax revenue to purchase​ 10,000 acres in Florida for use as a bird sanctuary.

(All of the Above) -Value of other goods and services the government could have purchased with that money -Value of goods and services that taxpayers could have purchased with the tax revenue collected -Value of the next best alternative use of the tax revenue collected

For each of the​ following, describe some of the potential opportunity costs​: A foreign government subsidizes its national airline to keep airfares down.

(None of the Above)

For each of the​ following, describe some of the potential opportunity costs​: Riding your bicycle 20 miles every day. ​(Check all that apply.​)

-Time Spent Resting -Time spent on other leisure activities

You are an intern to the editor of a​ small-town newspaper in​ Mallsburg, Pennsylvania. Your​ boss, the​ editor, asks you to write the first draft of an editorial for this​ week's paper. Your assignment is to describe the costs and the benefits of building a new bridge across the railroad tracks in the center of town.​ Currently, most people who live in this town must drive 2 miles through thickly congested traffic to the existing bridge to get to the main shopping and employment center. The bridge will cost the citizens of Mallsburg​ $25 million, which will be paid for with a tax on their incomes over the next 20 years. 1.) What are the opportunity costs of building this​ bridge? 2.) What are the benefits that citizens will likely receive if the bridge is​ built?

1.) (All of the Above) -Any economic inefficiencies associated with the new income tax. -The value of goods and services that the city could have purchased with the tax revenue had it not built the bridge. -Revenue lost by shopkeepers near the old bridge. -Construction costs such as​ noise, additional​ (temporary) traffic, and other delays. 2.) (A and C only) -Reduced travel time for commuters and shoppers. -Less pollution from idling traffic.

​"As long as all resources are fully employed and every firm in the economy is producing its output using the best available​ technology, the result will be efficient​." Which of the following is not an additional requirement for​ efficiency?

All resources must be devoted to the production of a single good.

For each of the​ following, describe some of the potential opportunity costs​: Upgrading to a balcony suite for your cruise around the Mediterranean Sea.

An excursion you could have purchased with the money spent on the upgrade

For each of the​ following, describe some of the potential opportunity costs​: Going home for Thanksgiving vacation.

Time spent studying