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Economics

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1. Opportunity cost In addition to direct money costs, what were two of the opportunity costs that affected your decision to study at LCC? (Please answer briefly.) 2. “People make choices based on expected costs and benefits”. (Please answer briefly.) a. What were some of the expected benefits that led you to choose to study at LCC? b. How has the Covid-19 pandemic changed some of the expected costs and benefits of your choice? 3. "Time is money" (opportunity cost): If you value your time at €8 per hour, would you prefer to fly to LCC in 2 hours for €100, or take a train to LCC in 10 hours for €20? Explain your answer, using the numbers. 4. Julija can read either 40 pages of economics or 20 pages of psychology in an hour. When studying, what is Julija's opportunity cost for reading each page of economics? Explain. 5. “Everyone should receive the best possible health care, no matter what the expense.' Which of the seven principles of economics does this recommendation neglect to consider? Explain. 6. “Unemployed people should receive benefits replacing their full salary (at their previous job) until they find another job.” Which of the seven principles does this recommendation neglect to consider? Explain. 7. In the circular-flow diagrams, does each of the following transactions take place in a product market or in a factor market? Which direction does the product or factor flow (between firms and households)? Which direction does the payment flow? a. Sam pays a storekeeper €2 for a liter of milk. b. Sally earns €4 per hour working at a restaurant. c. Susan spends €6 to see a film at the cinema. d. Stuart receives $10,000 in dividends from his shares in Microsoft corporation. 8. One common assumption in economics is that the products of different firms in the same industry are indistinguishable. a. Is this a reasonable assumption for restaurant meals? Explain your answer. b. Is this a reasonable assumption for "commodity” products like copper or gold? Explain your answer.