Chapter 1 - Problem 2 (a,b,c)

2. Describe some of the opportunity costs when you decide to do the following:

1. Attend college instead of taking a job
2. Watch a movie instead of studying for an exam
3. Ride the bus instead of driving your car

Chapter 1 - Problem 4 (a,b,e)

4. Use the concept of opportunity cost to explain the following.

1. More people choose to get graduate degrees when the job market is poor.
2. More people choose to do their own home repairs when the economy is slow and hourly wages are down.
3. There are more parks in suburban than in urban areas.
4. Convenience stores, which have higher prices than supermarkets, cater to busy people.