(Table: Trade-off of Study Time and Leisure Time) Look at the table Trade-off of Study Time and Leisure Time. A student sleeps 8 hours per day and divides the remaining time between study and leisure time. Suppose this student is studying 4 hours and spending 10 hours doing leisure activities. What is true about this allocation of his scarce resources?
A) This point is on the production possibility frontier.
B) This point is both efficient and feasible.
C) This point is inside the production possibility frontier.
D) This point is outside the production possibility frontier.
C) This point is inside the production possibility frontier.
You might also like to view...
Figure 17-8
Refer to . If this country allows free trade in wagons,
a.
consumers will gain more than producers will lose.
b.
producers will gain more than consumers will lose.
c.
producers and consumers will both gain equally.
d.
producers and consumers will both lose equally.
Mathematically the marginal rate of substitution is
A) always a negative number. B) always a positive number. C) is equal to 1. D) sometimes a positive and sometimes a negative number.
[NeedAttention]
Exhibit 30-2
?
Specialization and trade do not allow individuals, firms, or even nations to acquire goods that lie beyond their production capabilities
a. True b. False Indicate whether the statement is true or false