Angela is a farmer whose feasible frontier is illustrated in the diagram. Bruno is Angela's neighbour who is not a farmer but claims some of Angela's harvest for an unknown reason. The Points E-I are possible allocations of grain production between Angela and Bruno. The current allocation between the two parties is Point E. Which statement incorrectly describes the situation illustrated in the diagram? Select one: a. If the allocation moves to Point F, the total output level increases. b. Angela would prefer Point I to the current allocation as she would have more grain and more free time. c. From the diagram it is not certain whether Angela would prefer Point G to Point E. d. Angela would not prefer Point G to Point F as the former requires her to work more hours than the latter. e. Bruno and Angela are currently splitting the output in half

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Angela is a farmer whose feasible frontier is illustrated in the diagram. Bruno is Angela's neighbour who is not a farmer but claims some of Angela's harvest for an unknown reason. The Points E-I are possible allocations of grain production between Angela and Bruno. The current allocation between the two parties is Point E. Which statement incorrectly describes the situation illustrated in the diagram?

Select one:

a. If the allocation moves to Point F, the total output level increases.

b. Angela would prefer Point I to the current allocation as she would have more grain and more free time.

c. From the diagram it is not certain whether Angela would prefer Point G to Point E.

d. Angela would not prefer Point G to Point F as the former requires her to work more hours than the latter.

e. Bruno and Angela are currently splitting the output in half

12
Total grain 10.5
produced
Bushels of grain
What
Bruno gets
5.25
What
Angela gets
G
0 Angela's free time 12 Angela's work
Angela's hours of free time
Feasible frontier:
Angela and Bruno
combined
24
Transcribed Image Text:12 Total grain 10.5 produced Bushels of grain What Bruno gets 5.25 What Angela gets G 0 Angela's free time 12 Angela's work Angela's hours of free time Feasible frontier: Angela and Bruno combined 24
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