Answer to Question #98734 in Microeconomics for Joseph

Question

Describe some of the opportunity cost when you decide to do the following : 1. Attend university instead of taking a job. 2. Watch a movie instead of studying for a quiz. 3. Ride commercial bus instead of driving your own car. 4. More people choose to get graduate degree when the job market is poor. 5. More people choose to do their own home repair when the economy is slow and monthly salaries are down . 6. Few students enrol in lectures that start before 6:30 am

Answer 1

1.      If you’re attending a university instead of taking a job then you are paying a lot of money when you could be making money right out of high school. However, you are paying college tuition to study for a job that could potentially get you a better pay.

2.      If you are watching a movie instead of studying for a quiz then you get the fun of watching a movie but then you would do poorly in the quiz that would count for a significant part of your grade.

3.      Riding on a bus instead of driving your car would save you the cost of gas but would increase the time it would take you to get to your destination, because of all the additional stops along the way, and the convenience of being able to leave or go anywhere with your car would also be taken away.

4.      If many people choose to study for a degree when the job market is poor then it will lead to increased unemployment in a country.

5.      If more choose to do repair work on their own in a slow economy they will save much. However, the repair workers will have scarce jobs

6.      If few students enroll in lectures that start before 6.30pm then school will have to get rid of the early morning lectures since the attendance is poor. The teaching staff will also will get affected due to cancellation of the lectures.