9.
A) When people must pay higher taxes on their wage earnings, it reduces their incentive
to work is a positive statement because is not my opinion, describes the reality.
B) We should lower taxes to encourage more work is a normative statement because is
my opinion, is what I think
C) Economics can not always be used to completely decide what society ought to do is a
positive statement
D) The system of public education in this country generates greater benefits to society
than the cost of running the system is a positive statement.
10.
c) The federal Reserve SHOULD reduce the rate of money growth is normative because is my
opinion
f) my dog weighs 75 pounds is positive, is true, describes reality
ONLINE QUESTIONARIE CHAPTERS 1 AND 2 SEPTEMBER 30TH (ACTIVITY)
CHAPTER 2
Country A/ Unit opportunity cost of one unity clothing: =sacrifice/gain= food(2)/clothing(3)=
0,67 of food
Country B/ Unit opportunity cost of one unity clothing= sacrifice /gain= food(1)/clothing(4) =
0,25 of food
Country B should be special at clothing because is more efficient, they inly sacrifice 0,25 of
food
Unit opp cost of 1u food= sacrifice / gain= 3/2
A student decides to study four years in the university to graduate in Business Administration
(GADE) rather than start working in a firm. This student pays €1,000 tuition fee each year. The
annual salary he would get in an average firm is €20,000 per year. What is the opportunity cost
of this student of obtaining a degree in GADE?
a. €80.000
b. €84.000 1000x4+20000x4
c. €4.000
d. There is no opportunity cost
2. A recent graduate of business administration decides to continue studying and doing a
biannual master in business and management at the University rather than start working in a
company. The cost of tuition per year is 1,500 euros. The average annual salary for a graduate
in GADE is 30,000 euros a year. What is the opportunity cost for this individual of this decision?
