HW1 Solution
Q1 (Chapter 1A Q9)
Use the figure A1.16 to calculate the slope of the relationship.
a.
At points
A
and
B
.
b.
Across the arc
AB
.
The slope at point
A
is

4, and the slope at point
B
is

1.
(Ref: To calculate the slope at a point on a curved line, draw the tangent to the line
at the point. Then find a second point on the tangent and calculate the slope of the
tangent. The tangent at point
A
cuts the
x
axis at 2.5. The slope of the tangent
equals the change in
y
divided by the change in
x
. The change in
y
equals 6 (6  0)
and the change in
x
equals

1.5 (1  2.5). The slope at point
A
is 6/

1.5, which
equals

4. Similarly, the slope at point
B
is

1. The tangent at point
B
cuts the
y

axis at 5. The change in
y
equals 3, and the change in
x
equals

3. The slope at point
B
is

1.)
The slope across the arc
AB
is

2. The slope across an arc
AB
equals the change in
y
, which is 4 (6 minus 2) divided by
the change in
x
, which equals

2 (1 minus 3). The slope across the arc
AB
equals 4/

2, which is

2.
Q2 (Chapter 2, Q12)
Suppose that Yucatan’s production possibilities are given in the
table.
a.
Draw a graph of Yucatan’s
PPF
and explain how your
graph illustrates a tradeoff.
Yucatan’s
PPF
is illustrated in Figure 2.11. The figure illustrates a
tradeoff because moving along Yucatan’s
PPF
producing more of
one good requires producing less of the other good. Yucatan trades
off more production of one good for less production of the other.
b.
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 Spring '11
 po
 Economics, Opportunity Cost, Sunscreen, Marginalism, Yucatan

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