Economics Coursework Assignment on Opportunity Costs

Unit 1 Assignment: Opportunity Costs

Name: Brandon

Course Number and Section: BU224 Section 1

Date: August 6, 2022

General Instructions:

  1. Unless specified differently by your course instructor, save this assignment template to your computer with the following file naming format:

Course number_section number_last name_first name_unit number

Example: BU224_Section02_David_Alex_Unit1

  1. At the top of the template, insert the appropriate information:

Your name, course number, and section, and the date

  1. Insert your answers in the appropriate space provided for the question. Your answers should
  2. follow the current APA format with citations to your sources,
  3. include a list of references at the bottom of your last page,
  4. be in Standard English with correct spelling, punctuation, grammar, and style,
  5. be double-spaced,
  6. be formatted in Times New Roman,12-point, black font, and
  7. respond to questions in a thorough manner, providing specific examples of concepts, topics, definitions, and other elements asked for in the questions.
  8. Upload the completed assignment to the appropriate Dropbox.
  9. Any questions about the assignment or format should be directed to your course instructor.

Assignment:

In this assignment, you will demonstrate your understanding of certain economic principles that underlie virtually all decisions that people make. Specifically, you will investigate the concept of opportunity costs by selecting the correct underlying principle and explaining in a series of logical steps which would likely produce the results described.

Questions

  1. Howard needs to buy a laptop computer to start online university courses. The price at the local computer store is $650. The identical computer is available at one online site for $605 and another site for $622. All prices include the appropriate sales tax. The accompanying table indicates the typical shipping and handling charges for the computer ordered online.
Shipping method Delivery time Charge
Standard shipping 3–7 days $13.99
Second-day air 2 business days $18.98
Next-day air 1 business day $23.98

 

  1. Using the required textbook for the course, define “opportunity cost” in economic terms.

(Enter your response here.)

  1. In this situation, what are the opportunity costs of Howard choosing to buy online instead of at the local computer store? Note that if you buy the computer online, you must wait to get it.

(Enter your response here.)

  1. List all the possible choices for Howard, including their differences in price and delivery time.

(Enter your response here.)

  1. What tradeoffs will Howard likely consider when determining which of these choices he will choose?

 

(Enter your response here.)

  1. During improving economic conditions, much additional construction of homes and condos throughout much of the U.S. takes place. This provides a significant increase in the income of workers in the construction trades. Many of the construction workers are immigrants and have family and relatives in other countries. Often these workers will send part of their income to their less fortunate relatives in their old country, especially in Mexico and some of the South American countries.

 

  1. Which of the 12 basic economic principles outlined in the course textbook best describes this situation?

(Enter your response here.)

 

  1. Using the principle you have selected, describe the chain of events that best explains how the increased money sent to families in these South American countries will cycle through the economy of that country.

(Enter your response here.)

 

  1. What overall effect will this have within these countries’ economies?

(Enter your response here.)

 

  1. Assume that a country that once had a lucrative oil-producing industry experiences a rapid fall in market prices that has caused numerous oil exploration and drilling companies to stop production. The result is many oil exploration and drilling industry workers out of work and tremendous amounts of oil exploration equipment left sitting in the equivalent of “used car lots” to be sold.

 

  1. Which of the 12 basic economic principles outlined in the course textbook best describes this situation?

 

(Enter your response here.)

 

 

  1. Using the principle you have selected, describe the chain of links that best explains how the falling international oil prices caused the workers in this country to be laid off and available oil within this country to be left in the ground.

 

(Enter your response here.)

 

  1. What overall effect will this have within these former oil-producing communities?

 

(Enter your response here.)

 

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References:

Author. (Date.) Title. Source.