Answer to Question #26785 in Macroeconomics for Mona Insari

Question

describe some of the tarde offs faced by each of the following:
a. a family deciding whether to buy a new car
b. a member of Congress deciding how much to spend on national parks
c. a company president deciding whether to open a new factory
d. a professor deciding how much to prepare for class
e. a recent college graduate deciding whether to go to graduate school

Answer 1

A. The tradeoff of buying a car for the family is anything else they could get for the money they spend to buy the car
B. The tradeoff for the member of congress deciding how much to spend on the park is the money he could be spending on other programs
C. The tradeoff for the president deciding whether or not to open a new factory is the funds he could use to improve technology or to raise wages of employees
D. The tradeoff for the professor is the time he could spend resting instead of preparing for the class
E. The tradeoff for the college student is the time he could spend at a job or going to college for an opportunity for a better job