Economics
As a manager of a financial planning business you have two
financial planners, Phil and Francis. In an hour, Phil can produce either one
financial statement or answer 8 phone calls, while Francis can either produce 4
financial statements or answer 10 phone calls. Does either person have an
absolute advantage in producing both products? Should these two planners be
self-sufficient (each producing statements and answering phones) or specialize?
Be sure to show your work
We make choices as consumers every day. Opportunity cost is
defined as a person’s “next best alternative” or “the cost of
what you give up when you make a choice.”
Think of a recent decision you made regarding your career.
(going to college online) What was your opportunity cost for making that
choice? What was your “next best alternative”?
In this activity you will need to go to the realtor.com
website. Follow the instructions for “Finding a Home”, and check
housing prices for a 3-bedroom, 2-bath house in several Columbus GA. Explain
why housing prices vary from city to city. Clearly explain how supply and
demand affect the prices of the homes and be sure to show your work.
