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MGEA01H3 Chapter Notes -Passive Smoking, Rush Hour, Opportunity Cost

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School
UTSC
Department
Economics for Management Studies
Course
MGEA01H3
Professor
Michael H O

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MGEA01H3 Full Course Notes
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MGEA01H3 Full Course Notes
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Document Summary

One of the opportunity costs of going to college or university is not being able to take a job. By choosing to go to college or university, you give up the income you would have earned on the job and the valuable on - the - job experience you would have acquired. Another opportunity cost of going to college or university is the cost of tuition, books, supplies, and so on. Alternatively, the benefit of going to college or university is being able to find a better, more highly paid job after graduation in addition to the joy of learning. Watching the movie gives you a certain benefit, but allocating your time (a scarce resource) to watching the movie also involves the opportunity cost of not being able to study for the exam. As a result, you will likely get a lower grade on the exam and all that that implies.

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Related Questions

a) Read the statement below carefully, and decide whether it is true or false. And then explain your answer (whether true or false€).

Tim, a high school senior, decided to sign up with a professional baseball team, instead of going to college. This implies that, to Tim, the benefit of going to college is more than the opportunity cost of doing so.

b) Read the statement below carefully, and decide whether it is true or false. And then explain your answer (whether true or false).

As a manager, if you want to discourage your staff-members from doing a certain thing, then you'd arrange it so that - from their perspective - the cost of doing that thing would be greater than the benefit of doing it.

Marginal Benefit. List and explain at least one example where you actually have used or will use the marginal principle in your life (personal or professional). Here is an example of how I used this principle. I considered pursuing my doctorate degree. Having a doctorate would increase my salary here at Ohlone College. However, obtaining the doctorate has costs associated with it. When I looked at the marginal cost of getting one more degree with the marginal benefit of one more degree, I calculated that the marginal benefit was higher than the marginal cost, so I chose to go on for my doctorate.

NOTE: Do not use the example of pursuing a college degree, since I just covered that one. Come up with a different example.

IMPORTANT: The marginal principle applies to purchasing MORE of something you already have. In my example, I already have two college degrees. The decision is about whether to obtain another degree. Do not give an example of deciding whether or not to buy something you do not have. For example, deciding to buy a car if you do not already have one is not an example of marginal cost. That is an example of opportunity cost.

Read the statement below carefully, and decide whether it is true or false. And then explain your answer (whether true or false).

a) Tim, a high school senior, decided to sign up with a professional baseball team, instead of going to college. This implies that, to Tim, the benefit of going to college is more than the opportunity cost of doing so. 

b) Read the statement below carefully, and decide whether it is true or false. And then explain your answer (whether true or false).

As a manager, if you want to discourage your staff-members from doing a certain thing, then you'd arrange it so that -- from their perspective -- the cost of doing that thing would be greater than the benefit of doing it. 

c) Read the statement below carefully, and decide whether it is true or false. And then explain your answer (whether true or false).

In a command-system farm economy, the head of each household decides what crop to produce in the family farm. 

d) Read the statement below carefully, and decide whether it is true or false. And then explain your answer (whether true or false).

In the circular flow model of the market system, households are the ones who demand resources in the resource markets.

e) Read the statement below carefully, and decide whether it is true or false. And then explain your answer (whether true or false).

The law of demand states that if gold becomes more expensive, then the demand for gold will increase, and the demand curve shifts to the right.