For each of the following situations describe the opportunity cost of each decision. 1. Annie has two options for Saturday. She can hang out with her family and go see a movie or go to a concert with her friends. She chooses to see the concert. OC 2. Jeffrey can either go to the football game on Friday night for $7, or take a shift at Chick-fil-A for 4 hours earning $8 per hour. He chooses to work. OC 3. Chinqo wants to travel to Europe this summer. He can either study abroad with a program that costs $4000 or work on a cruise ship in the Mediterranean and earn $500 per week for the 5 weeks. He chooses the study abroad program. OC 4. Use the chart at the right. The opportunity cost of a loaf of bread is when moving from possibility B to possibility C. 5. The total opportunity cost of moving from point D to C is Bread Books Possibility (number) (number) A 0 1,000 B 100 900 6. The marginal opportunity cost of moving from point A to B is C 200 700 per D 300 400 E 400 0 Computers (per year) 7. Using the PPC at right, moving from point A to point B, the per unit opportunity cost of a VCR is, per VCR 200 8. Moving from point C to point B, the marginal opportunity cost of computers is per computer. 150 100 9. True or False: points A, B, and C are all allocatively efficient. 50 10. True or False: points A, B, and C are all productively efficient. D 25 50 75 100 125 VCRs (per year) 11. True or False: For a concave PPC, the opportunity cost increases because resources are not equally productive in all activities. 12. While moving on a production possibilities frontier, if the opportunity cost of producing one good is 1/3, what would is opportunity cost of producing the other good (in the same range)? 13. Moving between two points on a PPC, a country gains 12 automobiles and forgoes 3 trucks. The opportunity cost of 1 automobile is, 14. For the following question: Draw a PPF and calculate the OC. On a production possibilities frontier, 500 pounds of apples and 1,200 pounds of bananas can be produced while at another point on the same frontier, 300 pounds of apples and 1,300 pounds of bananas can be produced. a.) What is the opportunity cost of producing a pound of bananas? b.) What is the opportunity cost of producing a pound of apples? 15. Budget Line: a 5-year-old was given $6 to spend at the movies. She has to spend it all and she can only buy popcorn or candy. The candy is $1.50 and the popcorn is $3, draw a budget line depicting the situation. a.) What is the opportunity cost of buying 1 popcorn? b.) What is the opportunity cost of buying 1 candy? c.) Which of the following of combinations of popcorn and candy is attainable? 2 popcorns and 1 candies 2 candies and 1 popcorn