Question

1-Introduce yourself by telling us your name,planned major at CSUDH, current hobbies,work ( if any)

2- Define opportunity cost. What's the opportunity cost when you decide to do the following:

a- Attend college instead of taking a job

b- Watch a movie instead of studying for an exam.

3- What's the comparative advantage of the US versus Japan. Does comparative advantage benefit the two countries to trade with each other?

Answer 1

1. Name :- David

Planned major :- CSUDH offers a wide selection of outstanding degrees that reflect situations.I choose BA in communication.

Current hobbies:-reading,creative writing, strategic mind games, music, computer.

Work:- part time job at restaurent.

2. Opportunity cost:- opportunity cost is profit lost when we choose different alternative over another. In simple words opportunity cost is the cost of the missed opportunity.

a) Attend college instead of taking a job:- if a person chooses to attend college instead of taking a job, the opportunity cost would be the salary which the person will get. Suppose if he gets $1000 salary, the opportunity cost would be $1000 for the person for attending college.

b) Watch a movie instead of studying for an exam:- if a student choose to watch a movie instead of studying for an exam, opportunity cost will be the price of the movie ticket.

3. Comparative advantage of the US versus Japan:

The US has comparative advantage is specialized and capital intensive labour based business american workers produce huge amount of goods or investment opportunities at lower cost.

Japan's opportunity cost is lower so fish production and export fish has comparative advantage.

Yes comparative advantage benefit the two countries to trade with each other.