PS1_1 - Rice University ECON 211, Fall 2009 Problem Set 1...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Rice University ECON 211, Fall 2009 Problem Set 1 (100 points) Due on Friday, Sept. 4 KEEP YOUR WORK NEAT. MAKE IT EASIER FOR THE GRADERS! (Please type your answers whenever possible. Thanks.) 1. ( 20 pts. ) You are trying to decide whether to go skiing for the weekend. The cost of skiing: transportation, lift tickets, and accommodation for the weekend costs $300. However, your host will feed you so you will spend no money on food. However, if you go skiing you will lose $120 (after tax) for one weekend day that you will miss work. However, if you work that weekend, you will have to eat out at a restaurant and this will costs you $30. What is the opportunity cost of going skiing? Write down the cost measured in money. 2. ( 24 pts. ) Tom is stranded on a desert island and can either sh or harvest dates. f Six points on his production possibilities frontier are given in table below. Dates gathered Fish caught A 54 0 B 50 1 C 42 2 D 32 3 E 20 4 F 0 5 a) Plot these possibilities on a “Dates gathered/Fish caught” grid, label the points, and draw the PPF. (Put Dates gathered on the vertical axis).
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 4

PS1_1 - Rice University ECON 211, Fall 2009 Problem Set 1...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online