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    Macroeconomics 9-5-18

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    Spartin
    Jason Pursley discusses the opportunity cost of reading a chapter for class instead of doing other activities like cleaning or leisure. He notes that if he reads additional chapters, his opportunity cost would rise proportionally to the time spent reading. He also discusses how GDP only measures value added through market transactions, so work done without cost like unpaid household labor adds no value even though it is productive work. This methodology creates some inconsistencies but provides a consistent framework for GDP.

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    Macroeconomics 9-5-18

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    Spartin
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    Jason Pursley discusses the opportunity cost of reading a chapter for class instead of doing other activities like cleaning or leisure. He notes that if he reads additional chapters, his opportunity cost would rise proportionally to the time spent reading. He also discusses how GDP only measures value added through market transactions, so work done without cost like unpaid household labor adds no value even though it is productive work. This methodology creates some inconsistencies but provides a consistent framework for GDP.

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    Jason Pursley discusses the opportunity cost of reading a chapter for class instead of doing other activities like cleaning or leisure. He notes that if he reads additional chapters, his opportunity cost would rise proportionally to the time spent reading. He also discusses how GDP only measures value added through market transactions, so work done without cost like unpaid household labor adds no value even though it is productive work. This methodology creates some inconsistencies but provides a consistent framework for GDP.

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    Download as DOCX, PDF, TXT or read online from Scribd
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    5 views1 page

    Macroeconomics 9-5-18

    Uploaded by

    Spartin
    Jason Pursley discusses the opportunity cost of reading a chapter for class instead of doing other activities like cleaning or leisure. He notes that if he reads additional chapters, his opportunity cost would rise proportionally to the time spent reading. He also discusses how GDP only measures value added through market transactions, so work done without cost like unpaid household labor adds no value even though it is productive work. This methodology creates some inconsistencies but provides a consistent framework for GDP.

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    Jason Pursley

    Page 22 #1 Discussion Question: The opportunity cost I took in reading the chapter was not doing
    something else with my time, such as cleaning the house, or leisure activities. If I were to continue
    reading additional chapters, my opportunity cost would rise at an equivalent rate as the time spent
    reading as Opportunity Cost answers the question “What would I do be doing instead of this?” and
    assumes that I would rationalize my choices based on their utility.

    Page 110 #1 Discussion Question: GDP takes the total value of the product at the end and by having a
    portion done without cost, no additional value is added, regardless of the result. Even when this causes
    odd results were identical work in different situations is not counted equally (or at all when unreported),
    the guidelines give us a consistent methodology which lends the GDP value meaning.

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