Kayla and Josel produce food and luxury goods. Kayla has 10 hours; it takes her 1 hour to produce 1 unit of food and 2 hours to produce 1 unit of luxury goods. Josel has 20 hours; for the first 8 hours of producing food, it takes him 2 hours to produce 1 unit of food. Then, beyond 8 hours, Josel is less productive and it takes him 4 hours to produce 1 additional unit of food. It takes Josel 2 hours to produce 1 unit of luxury goods no matter how many hours are allocated into the production of luxury goods. MAKE SURE YOU REFER TO THE ABOVE STATEMENT FOR QUESTIONS 36-41 Save Answer Q36 Suppose that Kayla and Josel trade only with each other, and agree to the following terms of trade: 2 units of food in exchange for 3 units of luxury goods. What is the relative price of 1 unit of food in terms of units of luxury goods? O A. 2/3. O B. 3/2. O C. 2/3 if within the first 8 hours of producing food for Josel, and 3/2 otherwise. O D. 3/2 if within the first 8 hours of producing food for Josel, and 2/3 otherwise. O E. None of the above. Save Answer Q37 Suppose that Kayla and Josel trade only with each other, and agree to the following terms of trade: 2 units of food in exchange for 3 units of luxury goods. What is Kayla's value-maximizing point of production? O A. 4 units of food and 6 units of luxury goods.
Kayla and Josel produce food and luxury goods. Kayla has 10 hours; it takes her 1 hour to produce 1 unit of food and 2 hours to produce 1 unit of luxury goods. Josel has 20 hours; for the first 8 hours of producing food, it takes him 2 hours to produce 1 unit of food. Then, beyond 8 hours, Josel is less productive and it takes him 4 hours to produce 1 additional unit of food. It takes Josel 2 hours to produce 1 unit of luxury goods no matter how many hours are allocated into the production of luxury goods. MAKE SURE YOU REFER TO THE ABOVE STATEMENT FOR QUESTIONS 36-41 Save Answer Q36 Suppose that Kayla and Josel trade only with each other, and agree to the following terms of trade: 2 units of food in exchange for 3 units of luxury goods. What is the relative price of 1 unit of food in terms of units of luxury goods? O A. 2/3. O B. 3/2. O C. 2/3 if within the first 8 hours of producing food for Josel, and 3/2 otherwise. O D. 3/2 if within the first 8 hours of producing food for Josel, and 2/3 otherwise. O E. None of the above. Save Answer Q37 Suppose that Kayla and Josel trade only with each other, and agree to the following terms of trade: 2 units of food in exchange for 3 units of luxury goods. What is Kayla's value-maximizing point of production? O A. 4 units of food and 6 units of luxury goods.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Transcribed Image Text:Q35 Statement for Q36-Q41
Kayla and Josel produce food and luxury goods. Kayla has 10 hours; it takes her 1 hour to
produce 1 unit of food and 2 hours to produce 1 unit of luxury goods. Josel has 20 hours; for the
first 8 hours of producing food, it takes him 2 hours to produce 1 unit of food. Then, beyond 8
hours, Josel is less productive and it takes him 4 hours to produce 1 additional unit of food. It
takes Josel 2 hours to produce 1 unit of luxury goods no matter how many hours are allocated
into the production of luxury goods.
MAKE SURE YOU REFER TO THE ABOVE STATEMENT FOR QUESTIONS 36-41
Save Answer
Q36
Suppose that Kayla and Josel trade only with each other, and agree to the following terms of
trade: 2 units of food in exchange for 3 units of luxury goods. What is the relative price of 1 unit
of food in terms of units of luxury goods?
O A. 2/3.
O B. 3/2.
O C. 2/3 if within the first 8 hours of producing food for Josel, and 3/2 otherwise.
O D. 3/2 if within the first 8 hours of producing food for Josel, and 2/3 otherwise.
O E. None of the above.
Save Answer
Q37
Suppose that Kayla and Josel trade only with each other, and agree to the following terms of
trade: 2 units of food in exchange for 3 units of luxury goods. What is Kayla's value-maximizing
point of production?
O A. 4 units of food and 6 units of luxury goods.
B. 10 units of food and 0 units of luxury goods.
C. O units of food and 15 units of luxury goods.
O D. 6 units of food and 4 units of luxury goods.
O E. None of the above.
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