Question
Assume that Sam's production possibilities frontier is a straight line, and that in a 8-hour workday, Sam can produce 2 baskets of berries or 4
Assume that Sam's production possibilities frontier is a straight line, and that in a 8-hour workday, Sam can produce 2 baskets of berries or 4 cups of corn meal. Sam can also trade with Robin at the following rate: for every 1 basket of berries that Sam gives to Robin, Robin gives Sam 3 cups of corn meal. If Sam wants to consume corn meal, she is better off when she ______________ because one hour of her work would result in ____________ of corn meal.
A.
produces corn meal herself; 3/4 cup
B.
produces berries and trades for corn meal; 3/4 cup
C.
invents cornberries; -2 cups
D.
produces berries and trades for corn meal; 1/2 cup
E.
produces corn meal herself; 1/2 cup
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