Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Exercise 1
Julian submits the following response to a question asking the opportunity cost of his
lecture attendance.
“Instead of attending a one hour economics lecture, I could have watched an episode of
Game of Thrones, or played tennis. Therefore, the opportunity cost of attending the lecture
is the tennis and the Game of Thrones that I had to give up”
Is Julian’s analysis correct? Explain your answer.
Exercise 2
Suppose Hannah lives right next door to a Harvey Norman. She has to drive 20 minutes out
of her way to get to a JB Hi-Fi.
Last week, a SanDisk 32GB USB was $30 at Harvey Norman, and at JB Hi-Fi the same USB
was only $20. Hannah decided to drive down to JB Hi-Fi to buy the cheaper USB.
This week, the Apple MacBook Pro 15” is selling for $2094 at Harvey Norman, and is $2084
at JB Hi-Fi. Hannah decides to buy the MacBook Pro at Harvey Norman.
Discuss whether you think Hannah’s decisions are rational.
Exercise 3
Are the following statements true or false? Discuss.
a) ‘Certain very talented people have comparative advantage in everything they do’
b) ‘If a certain trade is good for one person, it can’t be good for the person they are
trading with’
Exercise 4
Ruby and Oliver live together on the deserted island of Eyl that contains only a corn field,
and is surrounded by water that they can catch fish in.
Their production possibilities with respect to the production of corn and fish are as
presented in Tables 1 and 2 below.
Table 1 Table 2
Ruby’s Production Possibilities Oliver’s Production
Possibilities
300 0 150 0