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Question:
You have exams in economics and chemistry coming up and five hours available for studying. The following table shows the trade- offs you face in allocating the time you will spend in studying each subject.
a. Use the data in the table to draw a production possibilities frontier graph. Label the vertical axis "Score on economics exam" and label the horizontal axis "Score on chemistry exam." Make sure to label the values where your production possibilities frontier intersects the vertical and horizontal axes.
b. Label the points representing choice C and choice D. If you are at choice C, what is your opportunity cost of increasing your chemistry score?
c. Under what circumstances would A be a sensible choice?
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