Study Guide Notes

1. Service Provided by Mrs. Sipple’s Company

Mrs. Sipple owns a cleaning company that provides cleaning services to its customers. This includes tasks such as residential cleaning, office cleaning, carpet cleaning, and perhaps specialized services like window washing or deep cleaning.

2. Difference Between Physical Capital and Human Capital

Physical Capital: Refers to the tangible assets used in the production of goods and services. This includes machinery, tools, buildings, and equipment.
Human Capital: Refers to the skills, knowledge, and experience possessed by an individual or workforce. It encompasses education, training, and the health of workers that can contribute to economic productivity.

3. Arranging Terms into Correct Categories

Land	Labor	Human Capital	Physical Capital
N/A	A. Employees who install the tires	N/A	C. The company shop
N/A	N/A	N/A	B. New Tires
N/A	N/A	N/A	D. The hydraulic lift

Explanation of Categories:

Land: Natural resources used in production (none from the provided terms).
Labor: Human effort used in the production process (A).
Human Capital: Knowledge and skills (none from the provided terms).
Physical Capital: Man-made goods used in the production of goods and services (C, B, D).

4. Opportunity Cost for Mrs. Lech

If Mrs. Lech chooses to purchase the Green Bay Packers season tickets, the opportunity cost is the value of the next best alternative she is giving up, which in this scenario may be the Super Bowl 2011 Green Bay Packers signed game ball. This reflects the value she sacrifices by not opting for the signed game ball.

5. Difference Between “Net Value” of the Game Ball and the Game Ball

Game Ball: Refers to the physical item itself, which is the signed ball from a specific game played by the Green Bay Packers.
Net Value: This includes not just the monetary value of the game ball but also considers factors such as sentimental value, potential future appreciation, market demand, and personal enjoyment. The net value represents the overall worth of the game ball to the owner, which can exceed the just the purchase price.

6. Decision-Making for Mrs. Kraft

Mrs. Kraft is contemplating whether to travel to Arlington for a Lady Gaga concert. Key considerations might include:

Cost of Admission: Consider the price of the concert ticket.
Travel Expenses: Factor in gasoline, airfare, parking, and accommodation if necessary.
Time Investment: Assess the time needed for travel compared to the enjoyment and entertainment value of the concert.
Personal Preferences: Consider whether experiencing the concert live is worth more than alternate activities she could do with that time and money.

Summary

These notes provide a framework for understanding services, types of capital, opportunity cost, net value, and strategic decision-making processes in economic scenarios. Students should be able to discuss these concepts using practical examples related to the questions posed.