solutions02

solutions02 - C h a p t e r 2 THE ECONOMIC PROBLEM...

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2 THE ECONOMIC PROBLEM Solutions to the Odd-Numbered 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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solutions02 - C h a p t e r 2 THE ECONOMIC PROBLEM...

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