Major Tasks in Microeconomy - Essay Example

The components of opportunity cost include fees paid for tuition purposes, foregone earnings, book prices, and leisure time. The percentage of opportunity cost and the monetary value is closely correlated. Tuition fees of colleges can be treated as the greatest cost of attending college.

Decisions taken at the margin are one of the key factors in decision-making processes. The marginal cost accrued to a decision is taken into account by the decision maker at the margin. The decision maker judges whether the cost is greater than the benefit when the decision will take effect. An example is as follows: an employer judges the additional cost of recruiting an extra employee with the benefit the organization gains from recruiting that additional person. If it is analyzed that the benefit exceeds the salary, then the employer decides to recruit the person. The average cost is used while determining decisions on investments and tax.

The statement is as follows: “HSBC in Talks on Possible Sale of Ping An Stake”. The statement is positive as it can be accepted or rejected depending on the available pieces of evidence (The Wall Street Journal, 2012a).

The statement is as follows: “Sahara Feeling heat over bond sales”. The statement is normative because one can launch up to some opinions regarding the statement (The Wall Street Journal, 2012b).

The statement is as follows: “Citigroup to Cut More Jobs”. The statement is normative because one can launch up to some opinions regarding the statement (The Wall Street Journal, 2012c).

The statement is as follows: “India Data Spark Rate Cut Hopes”. The statement is positive as it can be accepted or rejected depending on the available evidence (The Wall Street Journal, 2012d).

The scenario under the assumption is seamstress decides to produce more dresses in an hour than the seamstress usually does. The incentive behind such action of the seamstress can be listed as follows:
- Subsidy on dress prices from the part of the government;
- Fall in price of raw materials;
- Reduction in transport prices necessary for the supply of goods to the market;
- Rise in demand conditions;
- Possibilities of exports opening up.

There may also be some disincentives like a fall in the export possibilities of the goods, uncertainty getting accrued to the production process, and a sudden fall in demand expectations. Scenarios based on political, legal, or cultural aspects are unavoidable.

It is assumed that the farmer efficiently uses the available land. The following diagram denotes the total amount of corn and beans he can produce.