4. Suppose you have midterms in economics and psychology tomorrow, and you have 6 hours left to study. The table below shows your expected exam scores, given the amount you study for each exam. Hours spent studying economics 0 1 2 3 لیا 4 5 6 Economics exam score 40 60 a. 70 75 79 84 88 Hours spent studying Psychology 0 1 2 3 4 5 6 Psychology exam score 50 65 75 83 90 93 94 a) Draw your production possibilities frontier (PPF) to illustrate your study options. If you have already spent 5 hours studying for psychology, what is the opportunity cost of increasing your psychology grade by one more point? X b) If your goal is to maximize your combined exam scores, how many hours should you spend studying each subject? c) If, instead, a club meeting gets canceled and gives you 7 hours to study, how would this change your production possibilities frontier? Illustrate this change on your graph from part

4. Suppose you have midterms in economics and psychology tomorrow, and you have 6 hours left to study. The table below shows your expected exam scores, given the amount you study for each exam. Hours spent studying economics 0 1 2 3 لیا 4 5 6 Economics exam score 40 60 a. 70 75 79 84 88 Hours spent studying Psychology 0 1 2 3 4 5 6 Psychology exam score 50 65 75 83 90 93 94 a) Draw your production possibilities frontier (PPF) to illustrate your study options. If you have already spent 5 hours studying for psychology, what is the opportunity cost of increasing your psychology grade by one more point? X b) If your goal is to maximize your combined exam scores, how many hours should you spend studying each subject? c) If, instead, a club meeting gets canceled and gives you 7 hours to study, how would this change your production possibilities frontier? Illustrate this change on your graph from part

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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6. Shifts in production possibilities Suppose Argentina produces two types of goods: agricultural and capital. The following diagram shows its current production possibilities curve (PPC) for barley, an agricultural good, and airplanes, a capital good. Drag the production possibilities curve (PPC) on the graph to show the effects of a time-saving innovation in the manufacturing of airplanes. Note: Select either end of the curve on the graph to make the endpoints appear. Then drag one or both endpoints to the desired position. Points will snap into position, so if you try to move a point and it snaps back to its original position, just drag it a little farther. AIRPLANES (Thousands) 180 150 120 8 O 60 30 0 0 70 PPC 140 210 280 BARLEY (Millions of bushels) 350 420 PPC
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5. A decision at the margin Suppose that Darnell is a diligent hard-working second-year college student. One Wednesday, he decides to start the day by working through 300 practice problems to study for the econometrics class. Using a table to track his progress throughout the day, he notices that as the hours pass, it takes him longer to solve the problems. Time Total Problems Solved 7:00 AM 0 8:00 AM 120 9:00 AM 210 10:00 AM 270 11:00 AM 300 Use the table to answer the following questions. The marginal, or additional, gain from Riley's second hour spent working, from 8:00 AM to 9:00 AM, is problems. The marginal gain from Riley's fourth hour spent working, from 10:00 AM to 11:00 AM, is problems. The following week, Riley's econometrics faculty advisor gives her some advice. In all their years of teaching they claim to observe that working on 105 multiple choice questions boosts a student's test score by about the same amount as spending an hour reviewing lecture notes. For simplicity,…
5. Opportunity cost and production possibilities Edison is a skilled toy maker who is able to produce both boats and puzzles. He has 8 hours a day to produce toys. The following table shows the daily output resulting from various possible combinations of his time. ^ Hours Producing Produced Choice (Boats) (Puzzles) (Boats) (Puzzles) A 8 0 4 0 B 6 2 3 10 C 4 4 2 16 D 2 6 1 19 E 0 8 0 20 On the following graph, use the blue points (circle symbol) to plot Edison's initial production possibilities frontier (PPF). 9 &
3. Suppose you currently earn $80,000 a year. You are considering a job that will increase your lifetime earnings by $400,000 but that requires an MBA. The job will mean also attending business school full time for two years at an annual cost of $70,000. You already have a bachelor’s degree, for which you spent $150,000 in tuition and books. a. Which of the above information is relevant to your decision on whether to take the job? b. What is the opportunity cost of going to school to study MBA? c. Should you take the job? [Note: You will need to get the MBA]
Game theory - Please help. Thanks!
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5. Opportunity cost and production possibilities Raphael is a skilled toy maker who is able to produce both trucks and kites. He has 8 hours a day to produce toys. The following table shows the daily output resulting from various possible combinations of his time. Choice Hours Producing Produced (Trucks) (Kites) (Trucks) (Kites) A 8 0 4 0 B 6 2 3 10 C 4 4 2 16 D 2 6 1 19 E 0 8 0 20 On the following graph, use the blue points (circle symbol) to plot Raphael's initial production possibilities frontier (PPF). ( attached image) Suppose Raphael is currently using combination D, producing one truck per day. His opportunity cost of producing a second truck per day is( 1, 3, 16, 19 kites) per day. Now, suppose Raphael is currently using combination C, producing two trucks per day. His opportunity cost of producing a third truck per day is ( 1,6,10, or 16 kites) per day. From the previous analysis, you can determine that as…
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Use the following table to answer the question below. Alexandra’s Production Possibilities Schedule Natalia’s Production Possibilities Schedule Number of Scarves Knitted per Day Number of Sweaters Knitted per Day Number of Scarves Knitted per Day Number of Sweaters Knitted per Day 0 4 0 4 3 3 2 3 6 2 4 2 9 1 6 1 12 0 8 0 Which of the following is an acceptable term of trade? Multiple Choice 2 sweaters for 7 scarves 4 sweaters for 10 scarves 8 sweaters for 15 scarves 6 sweaters for 10 scarves
5. Opportunity cost and production possibilities Maria is a talented artist who sells hand-crafted goods on her website. Maria currently crafts and sells both crochet hats and baskets. She spends 8 hours a day working on crafts. The following table gives different daily output scenarios depending on how much of her time is spent on each good. Hours Crafting Produced Choice (Crochet hats) (Baskets) (Crochet hats) (Baskets) 0 0 10 16 18 19 BASKETS A B с D E 30 25 20 8 6 15 4 2 0 2 4 8 On the following graph, use the blue points (circle symbol) to plot Maria's initial production possibilities frontier (PPF). 4 3 2 1 0 Initial PPF ⠀3 New PPF
A B C D E F Production Options Output of Output of Trucks per Day Tanks per Day 0 2.0 5 4 3 2 1 0 3.0 3.8 4.5 5.0 Output of Trucks (per day) 5 A A 0 0 1 B What is the opportunity cost of the first truck produced? Instructions: Enter your response rounded to one decimal place. tank(s). 2 3 4 E Output of Tanks (per day) F 5 6