Andrew Gaddis 8/21/2005 Period 2, Econ H Analytical Paragraphs Week #2 (Aug 15 – Aug 26) Part 1 1.) Time is a valuable resource to farmers. A farmer will work if he can because it is the most beneficial use of his time. While the farmer works, he has the opportunity cost of taking care of errands in town. When it is raining, a farmer can’t work. To make the most of his time, he will turn to his next best option for his time and will take care of errands in town. The case is similar in that a businessman with a new suit will often forego his errands on a rainy day. A new suit costs money; it is therefore a benefit to the businessman to prevent it from being damaged. By foregoing errands when it is raining, the businessman has the opportunity cost of a ruined suit. 2.) A highly talented person who travels frequently may decide to hire a chauffeur largely because it is of some benefit. Someone who travels frequently generally has things to do, places to be, so it is of substantial benefit to have good transportation. If they transport themselves, they may deal with opportunity costs of arriving on time and being at the right place. It is thus beneficial to have someone to handle transportation for them. Though it carries a monetary cost in paying the person, it brings the benefits of reliable and dependable transportation. 3.) A businessman will often purchase full-fare, the more expensive, airline tickets. The particular key benefit to this type of ticket is that it is refundable. Businessmen sometimes have to change plans on short notice, so it is important to be able to refund the ticket. Businessmen also have to travel when business demands, so the cost of the ticket is negligible in proportion to the costs involved. However, the average person will choose to plan a vacation when rates are lower. Their time and money for a vacation is scarce, so it is to their benefit to try and get the most out of everything, and that means paying as little as possible for the transportation. 4.) Our grandparents spent a lot of their time working simply to survive, they had an opportunity cost of death. Today, many devices have come along that have significantly decreased the time required towards labor-intensive activities. As technology has decreased our time spent on labor-intensive activities, it has created many more new activities that draw on someone’s time, such as playing video games, surfing the internet, watching TV, and etc. As a result of these activities, people are more stressed with their scarce resource of time than their grandparents because by say watching TV, they have an opportunity cost of say up keeping their yard. Up keeping a yard has a greater cost of time and effort, while TV has a benefit of little to no effort and of being enjoyable, so a person will tend to choose to watch TV, or some other ‘trivial’ task, instead of up keeping their yard, or some other more necessary task, giving a sense of being stressed for time. 5.) The Taj Mahal is a significant symbol in India. Young women cut the grass surrounding the Taj Mahal with kitchen shears. This is an incredibly low-cost method of Andrew Gaddis 8/21/2005 Period 2, Econ H achieving lawn care for the Taj Mahal. Kitchen shears are of little cost in comparison to say an industrial lawn mower, even a simple basic lawn mower. The cost of having some number of women in India to do the cutting is also likely of considerable value. It is possible the women probably volunteer their time, that they choose to give up some of their resources, to cut the grass because the Taj Mahal is a fairly significant symbol. Though the process is very impractical and not very efficient, it gets the job done at an incredibly low cost with the benefit of having the grass cut. 6.) When the average person gets married, they have the opportunity costs of marrying another person, or not marrying at all. Typically a person sees a benefit in marrying someone by having known him or her for some time and having developed a relationship, so they do it by choice. A lot of people are transfixed with celebrities and would give the world to marry one. Due to this, many celebrities meet individuals who are fixated with them, and the celebrity sees it as love, and they get married, with opportunity costs of marrying another person or not marrying at all. The relationship tends to break down with the celebrity since the relationship is rarely or hardly established. The cost of the marriage thus becomes greater than the benefit. Thus, an opportunity cost becomes a better choice so the celebrity will opt for a divorce, resulting in higher divorce rates among celebrities. 7.) The hurricane destroyed a lot of people’s housing, leaving many people looking for a place to live. So with more people likely looking for a place to live. So with more people likely looking for a place to live with a limited number of apartments, it is likely the cost of renting to tenants would be higher than before the hurricane. But the costs to the landlord for renting the space would likely go unchanged, assuming the hurricane cause no damage to the complex. This is because the storm has no effect on his costs; his costs for a tenant will be the same as they were before the storm. The storm causes a surplus of people looking for housing, exceeding the availability of housing, creating a shortage of housing, which leads to an increase in the price of housing to tenants, not in costs to the landlord. The opportunity costs to the landlord for renting to some tenant is having an empty space. A landlord wants to have as many spaces filled as possible because it means more money, so it is more beneficial to have a space filled with a tenant then to have a space empty. Part 2 1.) The needles are not truly free. There are very few things in the world that are truly free, and manufactured or produced items are never truly free. This is because regardless, if you follow back through the chain of production, somebody at some point is bearing a cost in producing it. Whether it be in spending time on it, providing monetary capital, equipment, or etc. But though it does bear a cost along the way, the needle is free to the individual who receives it, because it costs that person nothing in acquiring it. 2.) To the givers, there are a number of costs in providing the needles. Largely it is in producing and distributing the needles which requires time, money, equipment, raw Andrew Gaddis 8/21/2005 Period 2, Econ H natural resources, and labor. As to the receivers, they essentially have no cost at all beyond the minimal amount of time that is required of the received in acquiring the needle. 3.) The reason these costs are tolerated is because they believe the benefit to outweigh the cost. Many people die from viruses transmitted through using used needles. By providing the free needles, they aim to reduce the spread of viruses and diseases. And by stopping the spread, they save the lives of people who would otherwise likely face the specter of death at the perils of using contaminated needles. The givers believe that saving lives is the benefit that outweighs their costs. To the receiver, the benefits are more straightforward; the receiver gets to prolong their life. They get a free, clean, needle that they can shoot up on, and avoid the viruses, and thus avoid the associated death of such viruses.