Siteadmin, Check users, Administrators
6,631
edits
Changes
Jump to navigation
Jump to search
mLine 3:
Line 3: − + Line 76:
Line 76: + +
Economics Homework One - Model (view source)
Revision as of 01:09, March 9, 2011
, 01:09, March 9, 2011no edit summary
:A Wii is a good. A theme park is a service. (Seth)
:A Wii is a good. A theme park is a service. (Seth)
2. Imagine that your family has two options for dinner: eat at home, or go out to eat at McDonald's. Which option incurs more transaction costs? Identify two specific transaction costs. Which option is cheaper for your family, and why?
2. Imagine that your family has two options for dinner: eat at home, or go out to eat at [[McDonald's]]. Which option incurs more transaction costs? Identify two specific transaction costs. Which option is cheaper for your family, and why?
:The option of choosing McDonald's instead of eating at home would cause more transaction costs. The main transaction costs would be the cost of the gas and the time that it would take to get there. You will also have to pay for the service that you receive from the McDonald's employees. To eat at home would be a much cheaper option as there are hardly any transaction costs. (Isaac)
:The option of choosing McDonald's instead of eating at home would cause more transaction costs. The main transaction costs would be the cost of the gas and the time that it would take to get there. You will also have to pay for the service that you receive from the McDonald's employees. To eat at home would be a much cheaper option as there are hardly any transaction costs. (Isaac)
:The conclusion I reached is that while money is not a service, it represents those things, like a ticket to a concert, or sports game. And it is a good, because although it has no value in use, money has value in exchange. So in a way, money is in a category of its own, because it has value as both a service and a good. (Michelle)
:The conclusion I reached is that while money is not a service, it represents those things, like a ticket to a concert, or sports game. And it is a good, because although it has no value in use, money has value in exchange. So in a way, money is in a category of its own, because it has value as both a service and a good. (Michelle)
[[Category:Economics lectures]]