2
THE ECONOMIC
PROBLEM
Solutions to the OddNumbered Problems
1.
a.
Wendell’s opportunity cost of an hour of tennis is 2.5 percentage points.
When Wendell increases the time he plays tennis from 4 hours to 6 hours, his grade in
economics falls from 75 percent to 70 percent. His opportunity cost of 2 hours of tennis is 5
percentage points. So his opportunity cost of 1 hour of tennis is 2.5 percentage points.
b.
Wendell’s opportunity cost of an hour of tennis is 5 percentage points.
When Wendell increases the time he plays tennis from 6 hours to 8 hours, his grade in
economics falls from 70 percent to 60 percent. His opportunity cost of 2 hours of tennis is 10
percentage points. So his opportunity cost of 1 hour of tennis is 5 percentage points.
3. a.
Sunland’s
PPF
is a straight line.
To make a graph of Sunland’s
PPF,
measure the quantity of one good on the
x
axis and the
quantity of the other good on the
y
axis. Then plot the quantities in each row of the table and
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 Winter '07
 Peters
 Economics, Opportunity Cost, Imperial units, Sunland, 0 pounds, 0 gallons

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