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Economic Questions: Opportunity Cost - Assignment Example

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The author examines an opportunity cost which refers to the benefits or value of a thing that needs to be given up in order to achieve something else. In simpler terms, opportunity cost refers to what needs to be forgone to be able to achieve something else. …

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Subject: Macro & Microeconomics
Type: Assignment
Level: High School
Pages: 1 (250 words)
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Author: raujasper

Extract of sample "Economic Questions: Opportunity Cost"

If an individual requires to judge whether a holiday is a better option or buying a DIY set is a better option (based on their economic condition), then the benefits of both need to be weighed and based on this the individual can make a more informed decision. Consumers need to ensure that their money is invested in an area which had a higher return and proves to be more beneficial based on their economic condition and for that period of time. Hence opportunity costs allow consumers to make more informed decisions (McConnell, Brue, & Flynn, 2008).

While understanding the concept of Production Possibility curve, it is essential to learn in detail the possible outcomes and combinations that need to be produced within the economic resources that are available in the period. This can be clearly noted as the PPC tends to provide the maximum outcomes which help give a clearer idea of the law of diminishing returns. Read More

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Opportunity cost of corruption

...MACROECONOMICS OPPORTUNITY COST OF CORRUPTION Prepared by Submitted to Word Count Abstract The research is aiming to find the impact of corruption on the economy of the country and the people as individuals. What are the sources and consequences of corruption The results are based on the empirical study and search work available on the Internet. By combining these two research method, a thorough investigate is made. The overall research question or the main objective of the study is as follows: The impact of corruption and its cost on economic development of individuals and the country as a whole. The results of the study and research leaded to outcome that corruption is a global problem that exists at all levels...

8 Pages(2000 words)Essay

Law of Increasing Opportunity Cost

Providing free lunch to their customers who purchase a drink the salon owners offered the free lunch and at the same time, they accommodated the cost of it in the cost of the drink. The customers may think that they are getting a free meal at the cost of a drink and hence more people would be attracted towards the shop. This paper briefly explains the phrase 'TINSTAAFL' in terms of opportunity cost.
Opportunity cost is the cost of passing up the next best choice when making a decision. For example, if an asset such as capital is used for one purpose, the opportunity cost is the value of the next best purpose the asset could have been used for. Opportunity cost analysis is an important part of a company's decision-making proces...

8 Pages(2000 words)Research Paper

Opportunity Cost

...Opportunity Cost Opportunity cost is one of the topics in microeconomics that focuses on situations whereby investors have to make important decisions regarding allocation of the available resources. This paper focuses on the scarcity of resources as a reason why households and firms have to subject their alternatives to analysis resulting in opportunity cost. Government taxes and levies have been highlighted as some of the factors that lead to scarcity of resources portrayed in the paper as a major constraint. Environmental impact has also been discussed as a major factor leading to opportunity cost. A solution has been proposed to empower consumers and firms economically to help them satisfy their needs without sacrificing more...

7 Pages(1750 words)Term Paper

Opportunity cost

... Opportunity Cost In the economics domain, there are three closely related terms that are used not interchangeably but in tandem to relay economic matters in the best palatable way. These are, scarcity, choice and opportunity cost. The three terms are used in the economic domain which is defined as the means of making deliberate production, distribution and the final utilization of the resources within the human society (Ojediran 76). In respect to this the definition of the three terms becomes handy. Scarcity is the tendency of the goods and services to be limited in supply necessitating choice of one of the very many options available and this leads to the opportunity cost(Ojediran 98). Opportunity cast can them be defined as the act...

2 Pages(500 words)Essay

Opportunity cost

... Opportunity cost The problem of opportunity cost and how it relates to the problem of choice between scarce resources. The basic problem of Economics is the allocation of the scarce resources among the various unlimited needs of the human beings. These resources have competing uses and it is the task of the economic agents to make the allocation of the scare resources among the different uses. The agents make various choices of these resources and for each and every choice that is made there are a large number of options to choose from. For example by choosing to go for music DVD giving up a Film DVD then the benefit that would be derived by watching the film would be the opportunity cost for buying the music DVD apart from a specific...

4 Pages(1000 words)Essay

Opportunity cost

..., in opportunity cost, however define those costs that do not involve monetary transfer from the producing entity. Examples are owner’s investments in operations such as time that a business owner spends in an entity’s operations without rewards (Tucker, 2012). Cash flow is therefore the distinction between explicit and implicit costs of opportunity cost. References Baumol, W. & Blinder, A. (2011). Macroeconomics: Principles and policy. Mason, OH: Cengage Learning. Hussain, T. (2010). Engineering economics. New Delhi: Laxmi Publications, Ltd. McEachern, W. (2013). Microeconomics: A contemporary introduction. Mason, OH: Cengage Learning. Tucker, I. (2012). Survey of economics. Mason, OH: Cengage Learning....

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Opportunity Cost

... International Economics; Questions & answers Question a Developing country of Sud Corn T.V 100,000 0 0 1000 The opportunity cost of 1000 television sets is 100,000 bushels of corn, therefore opportunity cost of producing a television set is given as, (1 x 100,000)/1000 100 The opportunity cost of 100,000 bushels of corn is 10,000 television sets, therefore the opportunity cost of a bushel of corn in this country is giving as, (1 x 1000)/ 100,000 0.01 The first ratio means that for developing country of Sud to produce additional unit of a television set, it must forgo 100 bushels of corn. On the other hand, the country must forgo 0.01 units of television sets in order to produce an additional unit of bushels of corn Question b Industr15ial...

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Also, other academics criticize the models' failure to incorporate other determinants of risks such as firm size, book-to-market ratio, etc. then the plain correlation of the risk of the assets to the market. Despite these criticisms, many practitioners in the corporate world still use CAPM for capital budgeting. These issues are probed in this paper.
CAPM or the capital asset pricing model has been a tool in modern finance that has been extensively used for capital budgeting. The capital asset pricing model is useful in estimating the required return on an equity stock of a company (Perold 2004). Under the principle of finance that rational investors will require higher returns to compensate them when they undertake projects...

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Bernard Madoff : A Scapegoat of the Economic Crisis

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6 Pages(1500 words)Assignment

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The free market concept is mainly a theoretical concept as every country, even capitalist ones place some restrictions on the ownership and exchange of commodities (Free market economy). Therefore, the term free-market economy primarily means a system where the buyers and sellers are solely responsible for the choices they make. It gives the buyers and sellers the power to do business without being afraid of any regulations and intervention by the state. Hence, a free market gives the absolute power to prices to determine the allocation and distribution of goods and services (Free Market Economy). The pricing mechanism is in turn, driven by the forces of demand and supply of goods and services. Demand and supply of...

9 Pages(2250 words)Case Study

Economic Analysis on BMW Cars in the US Car Industry

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1. Th...

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Multiculturalism: Socio-economic Impacts on Modern States

This paper tends to argue that multicultural policies have promoted social segregation and economic insecurity in modern states. As the most relevant example, it will also evaluate how multicultural policies have evolved to be the most recent threat to the nationality and cohesion of Australia and the United Kingdom.

To begin with, many of the policies enacted on citizenship and immigration have brought about incessant controversy in Australia. In addition, the exceeding emphasis put on the multicultural policy has given rather unfavorable outcomes to both Australia and the UK. Policies that are intended to ensure equal representation and opportunities often create frustration and disappointment among certain interest g...

6 Pages(1500 words)Case Study

Globalization and World Economic Forum at Davos 2010

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7 Pages(1750 words)Coursework

Overhead Cost

Daggle (2009) asserts that “overhead costs are costs related to manufacturing which do not add intrinsic value to the product”. Boudreau (2009) asserts that “the obvious overhead costs include things such as rent, advertising, utilities, insurance, and office supplies. These basic expenses have no direct concern with the company’s products and services but they are required for the production of the products and services.
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Some of the territories led to a war with Mexico from which the United States emerged victorious, expanding its territories and decisively establishing its dominance in North America.

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I was eager to face challenging situations and resolve problems to the clients’ satisfaction. In one such situation, a client arrived in a hurry for a meeting. He introduced himself as X, a large-scale exporter of petroleum products from the United Kingdom. He wished to discuss and finalize a mutually beneficial contract related to the regular, wholesale purch...

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Economic and Social Impact of Globalization

Global corporations are heightening their awareness of the nature of their business relationships with diverse governments considered of primary importance to manage factors influencing their performance. From among the elements that global organizations closely and continuously evaluate, the social and economic impacts are considered of significant importance. As the components and diverse perspectives of globalization affect both the host organizations and those nations they do business with, this research aims to proffer significant social and economic issues that impact global strategies.

The concept of globalization encompasses theories beyond the traditional view that global corporations merely do business abroad....

7 Pages(1750 words)Coursework

Economic Questions: Opportunity Cost - Assignment Example

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