ECON101 Exam Solutions Fall 2018: Price Ceiling, Opportunity Cost, Absolute Advantage

• School: University of Waterloo
• Department: Economics
• Course: ECON101
• Professor: All

Document Summary

For opportunity costs, be weary of activities that are not sacrificed or not unique to the activity undertaken. Positive statements are based off facts: the correct answer is c. Opportunity cost would include expenses that you are incurring by attending college or income you are forgoing by including college. Meals fit neither of these categories because you have to eat no matter what: the correct answer is c. The dentist appointment is after work so the hourly wage of does not matter. The only amount sacrificed by going to the dentist is the : the correct answer is c. By getting the haircut, you are not only sacrificing the cost, but also the time that it takes to get the haircut which could be used to do something else: the correct answer is b. The marginal cost would be the cost increase by one more unit of activity.