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Problem 1. Suppose the economy consists of three individuals, Brian, Dave, and Reynold who can only produce lectures and exams. The following table summarizes their hourly productivity: Opp cost of 1 exam Brian Dave Lectures 7 2 Exams 4 5 Reynold 4 3 a) Calculate the opportunity cost of producing 1 exam for each individual. b) Draw the Production Possibility Curve for this economy with exams on the horizontal axis.

Problem 1. Suppose the economy consists of three individuals, Brian, Dave, and Reynold who can only produce lectures and exams. The following table summarizes their hourly productivity: Opp cost of 1 exam Brian Dave Lectures 7 2 Exams 4 5 Reynold 4 3 a) Calculate the opportunity cost of producing 1 exam for each individual. b) Draw the Production Possibility Curve for this economy with exams on the horizontal axis.

Exploring Economics
Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter3: Scarcity, Trade-offs, And Production Possibilities
Section: Chapter Questions
Problem 6P
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Problem 1. Suppose the economy consists of three individuals, Brian, Dave, and Reynold who can only produce lectures and exams. The following table summarizes their hourly productivity: Lectures Opp cost of 1 exam 7 2 Reynold 4 3 a) Calculate the opportunity cost of producing 1 exam for each individual. b) Draw the Production Possibility Curve for this economy with exams on the horizontal axis. Brian Dave Exams 4 5 exams c) What is the opportunity cost of producing one more exam when the economy is already producing 6 exams?
Transcribed Image Text:Problem 1. Suppose the economy consists of three individuals, Brian, Dave, and Reynold who can only produce lectures and exams. The following table summarizes their hourly productivity: Lectures Opp cost of 1 exam 7 2 Reynold 4 3 a) Calculate the opportunity cost of producing 1 exam for each individual. b) Draw the Production Possibility Curve for this economy with exams on the horizontal axis. Brian Dave Exams 4 5 exams c) What is the opportunity cost of producing one more exam when the economy is already producing 6 exams?
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