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Dear Class,
Today at the very end of the review, I was asked about multiple choice question #10 from the
sample problems.
Clearly, I did not do a good job of explaining why “D” is the right answer for
this question.
It’s rather confusing.
Let me try to articulate the reasoning below.
Aren
_____
10. Working efficiently, Bret can write 3 essays and outline 4 chapters each week. It must be true
that,
A. 4 essays and 3 chapter outlines would be both attainable and efficient.
B. 6 essays and 0 chapter outlines would be unattainable
C. 2 essays and 3 chapter outlines would be efficient.
D. 3 essays and 5 chapter outlines would be unattainable.
E. Bret has a comparative advantage in outlining chapters.
First note that 3 essays and 4 chapters is exactly on the PPF line since it’s efficient.
Further, note
that the question asks which one of the answers
MUST
be true.
A)
It may or may not be true that 4 essays and 3 chapters are both attainable and efficient.
This
just depends on the PPF.
We only know about one point on the PPF, but we don’t know about
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This note was uploaded on 04/13/2008 for the course ECON 1 taught by Professor Tang during the Spring '08 term at UCSD.
 Spring '08
 TANG

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