6) The figure below shows a student's feasible frontier and her indifference curves for final exam marks and the hours of free time per day. The table also gives the marginal rate of substitution (MRS) and the marginal rate of transformation (MRT) for the points shown in the figure. Based on this information, identify whether each of the following statements is true or false. Final grade 100- 90- a. At A, one hour of free time is equivalent in value to 3 grade points. However, 1 extra hour of studying leads to 9 extra grade points. She should therefore study more. c. At D, the MRT of 4 means that if she gives up all of her free time, she can attain 60 extra grade points. d. At E, the MRS matches the student's MRT. Therefore, she should exchange one hour of free time with 7 extra grade points. 6 b. At B, one hour of free time is equivalent in value to 2 grade points. However, 1 extra hour of studying leads to 20 extra grade points. She should therefore study more. 0 Feasible frontier Hours of free time per day 19 24 IC, IC Free time Grade MRT MRS B 13 84 2 20 D 15 78 4 15 E 19 57 7 7 A 22 33 9 3

6) The figure below shows a student's feasible frontier and her indifference curves for final exam marks and the hours of free time per day. The table also gives the marginal rate of substitution (MRS) and the marginal rate of transformation (MRT) for the points shown in the figure. Based on this information, identify whether each of the following statements is true or false. Final grade 100- 90- a. At A, one hour of free time is equivalent in value to 3 grade points. However, 1 extra hour of studying leads to 9 extra grade points. She should therefore study more. c. At D, the MRT of 4 means that if she gives up all of her free time, she can attain 60 extra grade points. d. At E, the MRS matches the student's MRT. Therefore, she should exchange one hour of free time with 7 extra grade points. 6 b. At B, one hour of free time is equivalent in value to 2 grade points. However, 1 extra hour of studying leads to 20 extra grade points. She should therefore study more. 0 Feasible frontier Hours of free time per day 19 24 IC, IC Free time Grade MRT MRS B 13 84 2 20 D 15 78 4 15 E 19 57 7 7 A 22 33 9 3

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter1: Introducing The Economic Way Of Thinking

Section1.A: Applying Graphs To Economics

Problem 1SQP

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