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Brief Principles of Macroeconomics...

8th Edition
N. Gregory Mankiw
ISBN: 9781337091985

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BuyFindarrow_forward

Brief Principles of Macroeconomics...

8th Edition
N. Gregory Mankiw
ISBN: 9781337091985
Textbook Problem

Maria can read 20 pages of economics in an hour. She can also read 50 pages of sociology in an hour. She spends 5 hours per day studying.

a. Draw Maria’s production possibilities frontier for reading economics and sociology.

b. What is Maria’s opportunity cost of reading 100 pages of sociology?

Subpart (a):

To determine

The production possibility frontier for Maria.

Explanation

Figure -1 illustrates the production possibility frontier for the two different goods.

In Figure -1, the horizontal axis measures the quantity of sociology pages read and vertical axis measures the quantity of economics pages read. If the person spends all 5 hours studying economics, then she can read 100 pages (=5×

Subpart (b):

To determine

The opportunity cost.

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