ECON 1011 Study Guide - Midterm Guide: George Washington University, Marginal Cost, Comparative Advantage
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ECON 1011 Full Course Notes
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Midterm exam (blue) - answers (50 points total; 50 minutes total) write the term or answer each question in the box provided on the right. The number of points for each question is given in parentheses: short answer (13 points) After taking all costs into account, you determine that you could earn. ,000 per year as an artist, ,000 per year as an accountant and ,000 per year as a waiter. In which occupation do you most likely have a comparative advantage: suppose grant has two work opportunities after college. Either he can take an job at a local bank and earn an income of ,000 per year but incur per year in transportations costs, or, he can start an internet business selling avatar pictures. Grant estimates that his annual total revenue in the internet business will be ,000. ,000 and his variable labor and other costs will be. Maximize, or seek, utility (or happiness, welfare, etc) or profit.
