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Chapter 2: Q 2 (page 42)

Why do you suppose that economists have estimated the dollar value of the combined opportunity costs of time that U.S. commuters spend in gridlocked traffic to be in excess of $150billion per year? Explain your reasoning.

Short Answer

Expert verified

Because the starting price of conversion is $150billion and the time spent commuting is 7billion hours.

Step by step solution

01

Step 1. Opportunity Cost

Opportunity cost is the next best alternative to satisfy the wants among choices.

02

Step 2. Reason

Economists have estimated the dollar value of the combined opportunity costs from when the United States commuters spend in gridlocked traffic to be in excess of $150billion per year because the conversion of the cars by Becker Automotive Inc. starts at $150,000.

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Most popular questions from this chapter

Like physical capital, human capital produced in the present can be applied to the production of future goods and services. Consider the table in Problem 2-13, and suppose that the nation鈥檚 residents are trying to choose between combination C and combination F. Other things being equal, will the future production possibilities curve for this nation be located farther outward if the nation chooses combination F instead of combination C? Explain.

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