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Button 2 - exercises production possibilities frontier

EXERCISES.

Do the following exercises related to opportunity cost. Do them individually.

 

1- The Casino has given you $100 worth of complimentary chips which must be wagered this evening. There are two tables – roulette and blackjack. The expected value of $100 bet on roulette is $83, and the expected value of $100 bet on blackjack is $86. What is:

 

2 - Suppose you have been offered a choice of two part-time jobs: 10 hours a week stacking shelves at the supermarket for $10 dollars an hour; or 12 hours a week working in the bar of the local hotel for $8 per hour plus a free case of beer once a week. Assuming that you will take one and only one of the jobs, what is:

 

After that, put in common your answers, and check them with the teacher.

 

Explain (write) in your own words what scarcity, opportunity cost and increasing opportunity cost are.

 

Watch the following video in Edpuzzle, and meanwhile you are watching it, some questions will be shown to you, so you have to pay attention to what the video explains about production possibility curve o production possibility frontier. 

The transcription will be given to you in the next class. We will work on it.

Short url:   http://multidict.net/cs/6198