Economics question?
1.)If a college student owes $5000 tution, $3000 room and board and $500 text but he can work and make $4,000 while in school. What is the opportunity cost of college if he could work and make $10,000 instead of going to college
2.)Which is not a factor of production; an acre of land, a drill press, $1000 , or a manager.
Answer:
The opportunity cost would be calculated this way. Your next best alternative is 10,000, which you are passing up. However, you make some money, which lowers the opportunity cost, but you are also incurring debt. So, the calculation looks like this:
10,000-4000+5000+3000+500=14,5...
$14,500 is your opportunity cost.
2. The $1000 is not a factor of production. A factor of production is a natural resource (land), capital goods which are used in the production and manufacture of other goods (drill press), and human labor (manager). The $1000 is not directly used to produce. It is used to purchase capital goods which directly produce. Thus, it is not a factor of production.
The opportunity cost of making 10,000 dollars would be going to college and making 4,000.
An acre is a natural resource, a drill press is.
1000 dollars is capital and a manager is entrepreneurship.
A drill press isn't a factor of production (as far as I know)
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2.)Which is not a factor of production; an acre of land, a drill press, $1000 , or a manager.
Answer:
The opportunity cost would be calculated this way. Your next best alternative is 10,000, which you are passing up. However, you make some money, which lowers the opportunity cost, but you are also incurring debt. So, the calculation looks like this:
10,000-4000+5000+3000+500=14,5...
$14,500 is your opportunity cost.
2. The $1000 is not a factor of production. A factor of production is a natural resource (land), capital goods which are used in the production and manufacture of other goods (drill press), and human labor (manager). The $1000 is not directly used to produce. It is used to purchase capital goods which directly produce. Thus, it is not a factor of production.
The opportunity cost of making 10,000 dollars would be going to college and making 4,000.
An acre is a natural resource, a drill press is.
1000 dollars is capital and a manager is entrepreneurship.
A drill press isn't a factor of production (as far as I know)
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