Opportunity Cost of Macroeconomic and Microeconomic Events
The market system cannot supply each person with an unlimited amount of resources, so choices must be made. Given the following events,
- Identify whether this event is a macroeconomic issue or a microeconomic issue and explain why you came to that conclusion.
- Define the opportunity cost that an individual or society would incur if that event occurred.
Events
- The Wacky Widget Factory, a firm, decides to produce 5,000 gadgets instead of 10,000 widgets.
- The U.S. government reduces funding for the Environmental Protection Agency, an agency in charge of regulating and monitoring the level of all pollution in the U.S., by $250 billion to reduce taxes on the wealthiest Americans.
- A state reduces taxes on large businesses that move their production to their state and pays for it by raising taxes on existing residents.
- Local public education funding is reduced and reallocated to improve streets and other infrastructure to attract new business.
- The Federal Aviation Administration (FAA) requires all passengers to submit to increases in security screening, which leads to increased waiting times to increase airline protection.
Submission Requirements:
- Attach a Word document of 150 to 250 words that contains all answers.
- Format: Double line space, Times New Roman, 12-point font