Q1: a) A company employs five workers, who work a normal week of 40 hours. The following table shows the minimum amount of time each worker requires to make a shirt and a pair of pants. For example, Jay requires 75 minutes to make a shirt and 60 minutes to make a pair of pants. Complete the table. Hint: All answers in the 4th and 5th columns are whole numbers (ie no decimals). You can copy the table and paste it in your submission. Worker Jay Kim Liam Minh Nazr Time per shirt 1 hours (or 75 minutes) 1 hours (or 80 minutes) hour (or 40 minutes) 1 hour (or 60 minutes) 1 hours (or 96 minutes) Time per pair of pants 1 hour (or 60 minutes) hour (or 48 minutes) hour (or 30 minutes) hour (or 40 minutes) 1 hours (or 80 minutes) Maximum output of shirts Maximum output of pants Opportunity cost per shirt b) What are the 2 conditions the company must meet to produce on its production possibilities frontier? Be as detailed as possible. c) Which 4 workers would the company use to make pants if it produces efficiently? Explain or show clearly how you arrived at your answer. d) What are the 6 specific production combinations on the company's weekly production possibilities frontier (PPF) when each worker specializes in 1 of the 2 goods? Explain how you determined these 6 production combinations. Q2: Harrison plans to spend 6 hours in total to study for his exams in Economics and Geography. The following table shows his expected mark on each exam based on the number of hours spent studying each course. For example, if he spends six hours to study Geography, he expects to get 84 marks in his Geography exam. Time Spent Studying Geography 0 hours 1 hour 2 hours 3 hours 4 hours 5 hours 6 hours Mark in Geography 0 25 45 60 70 78 84 Time Spent Studying Economics 0 hours 1 hour 2 hours 3 hours 4 hours 5 hours 6 hours Mark in Economics 0 20 35 47 57 63 66 a) What are the 7 specific production combinations on Harrison's production possibilities frontier (PPF)? Explain how you determined these 7 production combinations. b) What is Harrison's opportunity cost of getting 57 marks in Economics? Explain or show how you arrived at your answer. c) What is Harrison's opportunity cost of increasing his mark in Geography from 60 to 78? d) Is Harrison's PPF concave to the origin? Prove your answer WITHOUT drawing Harrison's PPF. Hint: This is a very challenging question. What is the significance of a concave to the origin PPF? e) What are 2 specific and distinct methods for Harrison to increase his expected mark in both exams at the same time? Q3: A company employs 5 workers to produce bracelets and rings. The following table shows the maximum daily output of each worker. For example, Amy can produce up to 5 bracelets per day or 4 rings each day. Worker Amy Bing Cory Maximum output of bracelets 5 bracelets 6 bracelets 7 bracelets Maximum output of rings 4 rings 3 rings 5 rings Dilpreet Eva 4 bracelets 7 bracelets 3 rings 4 rings What are the 6 specific production combinations on the company's daily production possibilities frontier (PPF) when each worker specializes in 1 of the 2 goods? Explain how you determined these 6 production combinations. Q4: British Columbia (BC) produces lumber and films. Show the impact of each of the following events on the BC economy using a properly-labeled and drawn production possibilities graph. Hint: What variables are measured on the axes of a production possibilities graph? You will draw a total of six graphs, one for each part of this question. Each graph must show the BC economy before and after the event. Draw and label your graphs carefully. You can draw the graphs on paper, take a photo of them and insert the picture into your document or you can use a drawing program such as Microsoft Paint to draw the graphs and insert them into your document. a) Some unemployed Albertans move to BC to look for work. b) Some unemployed workers in BC find employment in the film industry. c) Some workers quit their jobs in BC's lumber industry to work in BC's film industry. d) A technological advancement occurs that affects only BC's lumber industry. e) A technological advancement that affects only BC's lumber industry causes BC to increase its production of both lumber and films. f) Resources in BC's film industry work overtime
