Interview Questions Essay Example | Topics and Well Written Essays - 500 words

Interview Questions - Essay Example These highlight the differences, however there are similarities as well, as both micro-level and macro-level analysis involve understanding how the activities of specific entities creates somewhat of a trickle-down effect on all aspects from either an individual level or wide-scale business/government/finance activities. Opportunity costs can best be defined as the largest-valued decision that is relinquished after a decision has already been determined. Opportunity costs are different for each individual or organization and they represent what has been missed in order to fulfill a different objective. For example, a student who decides they must take a full-time class load at a local university would have several opportunity costs: They would lose time with friends in order to study hard or they would miss out on working at their fathers business in order to receive a higher education. This is an important economic model as it indicates scarcity and further aids in decision-making to assist in determining what the best course of action is once a decision has been made. Suppose that more companies receive permission to drill for oil in Alaska and U.S.-controlled waters. In addition, assume that the popularity of SUVs declines in favor of smaller, more fuel efficient automobiles. What will be the result on the market (supply, demand, price, and quantity) for oil in the U.S.? How does this move the supply and demand curve? The demand for oil would be considerably less, as more fuel efficient automobiles represents less consumer need for gasoline. At the same time, with companies digging in Alaska (and other areas), the supply of oil would also continue to increase. When this happens, when demand decreases and supply increases, likely the most significant impact would be a temporary lowered price for oil, at least until the demand for it grew. Assume that before the dig in Alaska gasoline was $3.50 per gallon. Afterward,