1. Ashley, Doug, and Mei-Lin are planning to travel from Halifaxto Sydney. The trip takes one hour by airplane and five hours bytrain. The air fare is $100 and train fare is $60. They all have totake time off from work while travelling. Ashley earns $5 per hourin her job, Doug $10 per hour, and Mei-Lin $12 per hour. Calculatethe opportunity cost of air and train travel for each person andput it in the table below. Assuming they are all economizers, howshould each of them travel to Sydney?

Traveller Train Plane Ashley a) Fare $60 $100

b) Cost of Time $25 $5 Total cost $85 $105

Doug a) Fare $60 $100 b) Cost of Time $50 $10 Total cost $110$110

Mei-Lin a) Fare $60 $100 b) Cost of Time $60 $12 Total cost $120$112

Ashley: Should take the train Doug: Can take either Mei-Lin:Should take the plane

Kindly provide answer to the questionsunderneath:

2. Are the following situations an example of equilibrium? Whyor why not?

a) Although it takes you 30 minutes to get to the school by bus,there is no other alternative transportation that you can take toget there

b) You always fall asleep with the TV on. Today, you receive aletter from the electric company saying that if you use lesselectricity, then you can get a large discount.

3. In 2020 the Government of British Columbia reformed thatprovince’s welfare system. The reform increased the amount ofunemployment payments that people would receive if they did notwork.

a) How does this reform affect the incentive to work? b) Is thisreform more equal or more efficient? Why?

4. Indicate whether each of the following statements is positiveor normative.

a. The government ought to reduce the size of the deficit inorder to lower interest rates.

b. Government imposition of a tax on tobacco products willreduce their consumption

Answer rating: 100% (QA)

Q1 It looks like your table is correct Here is my brief explanation of the calculations Ashley The opportunity cost of taking the train is the cost of ... View the full answer