Full Answer to MC_10 on Sample Problems

Full Answer to MC_10 on Sample Problems - Dear Class, Today...

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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.

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