Kaplan AB224 – Unit 1Assignment Opportunity Costs

Unit 1 AB224 | Microeconomics Unit 1 Assignment: Opportunity CostsName:Course Number and Section: AB224–0XDate:General Instructions for all Assignments1. Unless specified differently by your course instructor, save this assignment templateto your computer with the following file naming format: Course number_sectionnumber_Last_First_unit number2. At the top of the template, insert the appropriate information: Your Name, CourseNumber and Section, and the Date3. Insert your answers below, or in the appropriate space provided for in the question.Your answers should follow APA format with citations to your sources and, at the bottomof your last page, a list of references. Your answers should also be in Standard Englishwith correct spelling, punctuation, grammar, and style (double spaced, in Times NewRoman, 12–point, and black font). Respond to questions in a thorough manner,providing specific examples of concepts, topics, definitions, and other elements askedfor in the questions.4. Upload the completed Assignment to the appropriate Dropbox.5. Any questions about the Assignment, or format questions, should be directed to yourcourse instructor.AssignmentIn this Assignment, you will demonstrate your understanding of certain economicprinciples that underlie virtually all decisions that people make. Specifically, the conceptof Opportunity Costs by selecting the correct underlying principle and explaining in aseries of logical steps which would likely produce the results described.Questions1. Howard needs to buy a laptop computer to start online university courses. The priceat the local computer store is $650. The identical computer is available at one onlinesite for $605 and another site, for $622. All prices include the appropriate sales tax. Theaccompanying table indicates the typical shipping and handling charges for thecomputer ordered online.1 of 4 Unit 1 AB224 | Microeconomics 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 a. Define “opportunity cost” in economic terms.b. In this situation, what are the opportunity costs of Howard choosing to buy onlineinstead of at the local computer store? Note that if you buy the computer online,you must wait to get it.c. Show all of the relevant choices for Howard.d. What determines which of these choices Howard will choose?2. During the improving economic conditions of 2015 and early 2016 much additionalconstruction of homes and condos throughout much of the U.S. took place. Thisprovided a significant increase in the income of workers in the construction trades.Many of the construction workers were immigrants and have family and relatives inother countries. Often these workers would send part of their income to their lessfortunate relatives in their old country, especially in Mexico and some of the SouthAmerican countries.a. Which of the economic principles best describes this situation?b. Using the principle you have selected, describe the chain of events that bestexplains how increased spending for U.S. home and condo construction is likelyto affect the performance of the economies of these South American countries. 3. From June 2008 oil was at a high of $144.78 per barrel. During the period from April2011 until July of 2014, the price of oil hovered between about $115.32 per barrel andabout $105.22 a barrel. Then, starting in August 2014 oil began a precipitous fall in pricefrom the $105.22 to $33.62 a barrel in January 2016. Although the U.S. has great2 of 4 Unit 1 AB224 | Microeconomics amounts of oil that can be brought out of the ground by “fracking,” by the beginning of2016 many of the workers in the U.S. oil exploration and drilling industry were out ofwork and tremendous amounts of oil exploration equipment was sitting in the equivalentof “used car lots” to be sold. a. Which of the economic principles best describes this situation? b. Using the principle you have selected, describe the chain of links that bestexplains how the falling international oil prices caused U. S. workers to be laid offand available U.S. oil to be left in the ground. ——————————————-References: Unit 1 Assignment: Opportunity Costs Grading Rubric:ContentFull AssignmentOverall Writing:Correct coversheet information at the top of1st pageAPA format for answersCorrect citationsStandard English, no errorsAt least one, or more, references PercentPossible100% PointsPossible40.00 20% 8.00 Answers: provides complete informationdemonstrating analysis and critical thinking: 80% 5%3%3%4%5% 32.003 of 4 Unit 1 AB224 | Microeconomics Individual Questions:1. a. – Define opportunity costs.1. b. – What are Howard’s opportunity costs?1. c. – Show all relevant choices.1. d. – What determines how Howard willmake his choice?2. a. – Which principle describesimprovement in U.S. housing constructionaffecting some South American economies?2. b. – Describes steps between theimproving U.S. housing construction andchanges in the economies of some SouthAmerican countries.3. a. – Which principle describes falling oilprices affecting U.S. oil left in the ground?3. b. – Describe steps between the fall in oilprices and laid off workers.Sub-total for Individual Questions: 10% 4.00 10%10% 4.004.00 10% 4.00 10% 4.00 10% 4.00 10% 4.00 10% 4.00 80% 32.00 4 of 4

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