If Tom and Abby specialize and then trade balls and rackets at 15 balls per 1 racket, A. Tom gains 2 rackets while Abby gains 40 balls an hour B. Tom gains 10 balls while Abby gains 1 racket and 15 balls an hour C. Tom gains 1 racket and 15 balls while Abby gains 10 balls an hour D. Tom gains 10 balls and Abby gains 10 balls an hour O E. together they gain 80 balls and 4 rackets an hour

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Tom and Abby produce rackets and balls.
The graphs show their production
possibilities.
Tom uses all his resources and produces
2 rackets and 20 balls an hour. Abby uses
all her resources and produces 2 rackets
and 40 balls an hour.
40-
30-
20-
10-
0+
0
80-
60-
40-
20-
Balls (per hour)
0+
Tom's PPF
1 2 3 4
Rackets (per hour)
Balls (per hour)
Abby's PPF
3 4 5
1
2
Rackets (per hour)
5
If Tom and Abby specialize and then trade balls and rackets at 15 balls per 1 racket,
A. Tom gains 2 rackets while Abby gains 40 balls an hour
B. Tom gains 10 balls while Abby gains 1 racket and 15 balls an hour
C. Tom gains 1 racket and 15 balls while Abby gains 10 balls an hour
D. Tom gains 10 balls and Abby gains 10 balls an hour
O E. together they gain 80 balls and 4 rackets an hour
o
N
Transcribed Image Text:Tom and Abby produce rackets and balls. The graphs show their production possibilities. Tom uses all his resources and produces 2 rackets and 20 balls an hour. Abby uses all her resources and produces 2 rackets and 40 balls an hour. 40- 30- 20- 10- 0+ 0 80- 60- 40- 20- Balls (per hour) 0+ Tom's PPF 1 2 3 4 Rackets (per hour) Balls (per hour) Abby's PPF 3 4 5 1 2 Rackets (per hour) 5 If Tom and Abby specialize and then trade balls and rackets at 15 balls per 1 racket, A. Tom gains 2 rackets while Abby gains 40 balls an hour B. Tom gains 10 balls while Abby gains 1 racket and 15 balls an hour C. Tom gains 1 racket and 15 balls while Abby gains 10 balls an hour D. Tom gains 10 balls and Abby gains 10 balls an hour O E. together they gain 80 balls and 4 rackets an hour o N
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