Assignment:
1.Define, in your own words, opportunity cost. What are your opportunity costs associated with attending Bethel's on-line program? How do they differ from your opportunity cost if you chose a program that required attendance in a traditional face-to-face classroom? Be sure to list several costs. The costs may be monetary or non-monetary.
2.Using the concepts of trade-offs, absolute advantage, and comparative advantage analyze the following questions:
Should Bill Gates clean his home or hire a housekeeper?
Should you clean your home or hire a housekeeper?
Is Mr. Gates' trade-off different from yours?
3.Discuss the following statement from the standpoint of TANSTAAFL: "Everyone in society should be guaranteed the best healthcare possible."
Use the concepts of equity and efficiency to support your argument.
4.Classify the following statements as positive or normative. Explain.
a. Price controls should be in place to keep the price of gasoline under $3 per gallon.
b. Markets are usually a good way to allocate scarce resources.
c. The current healthcare market in the United States is inefficient.
d.The U.S. should guarantee everyone "free" healthcare.