Asked by Anonymous

Points on the graph:
A(4,140)
B(12,120)
C(8,100)
D(14,80)
E(8,60)

a) According to the PPF, Person A has ___ hours to allocate between work and leisure.

b) Between points C and E, the opportunity cost of earning an additional $10 income is ___.

c) Between points C and A, the opportunity cost of one hour leisure is ___ in forgone income.

-------

a) 8 (I looked at point C and did the slope of the point...)

b) 0 (I think it's 0 because no opportunity lost over leisure??)

c) $10 (took the difference between the points--basically rise/run and got $10...)

Are my answers correct? If not, please correct them? Thanks.
Answered by economyst
Unfortunately, I am having trouble visualizing the graph. what are on each axis? Is the PPF on the graph drawn? Are you given a wage rate?

b) is unlikely to be right as about everything we do has an opportunity cost, including giving up leisure time.
Answered by Anonymous
Wage rate is not given, hours (leisure) on x-axis, income (work) on y-axis
There are no AI answers yet. The ability to request AI answers is coming soon!