1. We have described four factors of production: natural resources, labor, capit
ID: 1117255 • Letter: 1
Question
1. We have described four factors of production: natural resources, labor, capital, and entrepreneurship. Think of any banks you have been to
Write a list of some of the things used by that bank that would qualify as
Natural resources.
Write a list of some of the things used by that bank that would qualify as labor.
Write a list of some of the things used by that bank that would qualify as capital.
Who is the entrepreneur in this bank and what does the entrepreneur do?
2. We have defined opportunity cost as the value of everything that is sacrificed when one decides to do something. You have decided to take Economic Principles and Practice this semester. What is the opportunity cost of this decision? Try to consider all of the sacrifices you have made. Then, try to put a dollar value on them so that you can determine exactly what you are giving-up.
The opportunity costs are composed of:
I estimate that the dollar value of the opportunity costs of taking Economic Principles and Practiceis:
$_____________________________________ Show how you arrived at this number.
Explanation / Answer
1.
A list of some of the things used by that bank that would qualify as natural resources are:
a) Land
b) Electricity
c) Gas used in fire extinguisher
d) Gold or diamond in safe lockers.
A list of some of the things used by that bank that would qualify as labor are:
a) employees and managers
b) Customers
c) Security staff
A list of some of the things used by that bank that would qualify as capital are:
a) Computer Software used in bank
b) Money or funds i.e. financial wealth
c) Jewellery or ornaments present in lockers or safe.
Who is the entrepreneur in this bank and what does the entrepreneur do?
The entreprenuer of Deutsche Bank is Mr. A Baker and he manages the whole bank with a designation of a bank manager. He facilitates the business by accepting deposits and giving loans, making and accepting investments of the clients and making profit for the branch.
2.
The opportunity costs are composed of:
a) Earning from a part-time job : $181.25 ($7.5 per hour * 25 days)
b) Enjoyment and value by learning from the choir class : $142.42
c) Going to a trip with my family : $196.78 (includes fooding, lodging and travelling)
d) Teaching students music : $130
I estimate that the dollar value of the opportunity costs of taking Economic Principles and Practice is: $181.25 + $142.42 + $196.78 + $130 = $650.45
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