Exercise 1.4 You and your partner are highly efficient people. You can earn $20 per hour in the workplace; your partner can earn $30 per hour. (a) What is the opportunity cost of one hour of leisure for you? (b) What is the opportunity cost of one hour of leisure for your partner? (c) Now consider what a PPF would look like: You can produce/consume two things, leisure and income. Since income buys things you can think of the PPF as having these two 'prod- ucts' – leisure and consumption goods/services. So, with leisure on the horizontal axis and income in dollars is on the vertical axis, plot your PPF. You can assume that you have 12 hours per day to allocate to either leisure or income. [Hint: the leisure axis will have an intercept of 12 hours. The income intercept will have a dollar value corresponding to where all hours are devoted to work.] (d) Draw the PPF for your partner.
Exercise 1.4 You and your partner are highly efficient people. You can earn $20 per hour in the workplace; your partner can earn $30 per hour. (a) What is the opportunity cost of one hour of leisure for you? (b) What is the opportunity cost of one hour of leisure for your partner? (c) Now consider what a PPF would look like: You can produce/consume two things, leisure and income. Since income buys things you can think of the PPF as having these two 'prod- ucts' – leisure and consumption goods/services. So, with leisure on the horizontal axis and income in dollars is on the vertical axis, plot your PPF. You can assume that you have 12 hours per day to allocate to either leisure or income. [Hint: the leisure axis will have an intercept of 12 hours. The income intercept will have a dollar value corresponding to where all hours are devoted to work.] (d) Draw the PPF for your partner.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Solve by hand please and please explain it ?
![Exercise 1.4 You and your partner are highly efficient people. You can earn $20 per hour in the
workplace; your partner can earn $30 per hour.
(a) What is the opportunity cost of one hour of leisure for you?
(b) What is the opportunity cost of one hour of leisure for your partner?
(c) Now consider what a PPF would look like: You can produce/consume two things, leisure
and income. Since income buys things you can think of the PPF as having these two 'prod-
ucts' - leisure and consumption goods/services. So, with leisure on the horizontal axis and
income in dollars is on the vertical axis, plot your PPF. You can assume that you have 12
hours per day to allocate to either leisure or income. [Hint: the leisure axis will have an
intercept of 12 hours. The income intercept will have a dollar value corresponding to where
all hours are devoted to work.]
(d) Draw the PPF for your partner.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7f16e930-053d-42e0-b60f-28e6de4563bc%2Fb6de1759-0fb5-49ea-b5d2-2e9739874a0f%2Fj4die6r_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 1.4 You and your partner are highly efficient people. You can earn $20 per hour in the
workplace; your partner can earn $30 per hour.
(a) What is the opportunity cost of one hour of leisure for you?
(b) What is the opportunity cost of one hour of leisure for your partner?
(c) Now consider what a PPF would look like: You can produce/consume two things, leisure
and income. Since income buys things you can think of the PPF as having these two 'prod-
ucts' - leisure and consumption goods/services. So, with leisure on the horizontal axis and
income in dollars is on the vertical axis, plot your PPF. You can assume that you have 12
hours per day to allocate to either leisure or income. [Hint: the leisure axis will have an
intercept of 12 hours. The income intercept will have a dollar value corresponding to where
all hours are devoted to work.]
(d) Draw the PPF for your partner.
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