Question

Scarcity, opportunity cost, and marginal analysis

Raphael is training for a triathlon, a timed race that combines swimming, biking, and running.

Consider the following sentence: Each hour he spends swimming is an hour that he can't spend biking or running.

Which basic principle of individual choice does this sentence best illustrate?

Raphael has an incentive to spend more time on swimming than on biking or running.

Raphael can use time most efficiently by spending the same amounts of time on swimming, biking, and running.

All choices have opportunity costs.

People usually exploit opportunities to make themselves better off.

The interaction of individual choices

People in Ontario eat both corn and potatoes. It is technically possible for farmers to grow both corn and potatoes in Ontario, yet almost no farmers grow potatoes. Instead, every year, Ontario exports corn and imports potatoes from Prince Edward Island, where farmers specialize in potatoes.

Which of the following principles of economic interaction best describes this scenario?

-There is a tradeoff between equality and efficiency.

-All costs are opportunity costs.

-When markets do not achieve efficiency, government intervention can improve overall welfare.

-Trade can make everyone better off.

Answer 1

Part A

Answer—All choices have opportunity costs

On the off chance that Raphael chooses to swim, he swears off the time that he could have spent biking or running. So the open door cost of an hour of swimming is an hour of biking or an hour of running, whichever is the most noteworthy esteemed option Kyoko must forfeit to go through an extra hour swimming. There is no data on the viability of an additional hour of swimming when contrasted with that of an additional hour of biking or running. Along these lines, you do not know whether Raphael has a motivator to invest more energy in swimming. Additionally, you do not know whether it is most productive for Caroline to invest a similar measure of energy in every one of the three exercises.

Part B

Answer—Trade can make everyone better off

Here give the importance of trade and that will benefit every individual in the economy.