QUESTION 5

The following table illustrates the grades a student can earn on examinations in economics and biology if the student uses all available hours for

study.

Economics	Biology
100	40
90	60
80	75
70	85
60	93
50	98
40	100

1. Does the PPC illustrate the law of increasing opportunity cost? How do you know?

2. What is the opportunity cost to this student ofallocating enough additional study time on economicsto move her grade up from a 90 to a 100?

Consider a change in the table above so it now looks like this:

Economics	Biology
100	40
90	50
80	60
70	70
60	80
50	90
40	100

3. Does the PPC illustrate the law of increasing opportunity cost? How do you know?

4. What is the opportunity cost to this student for the additional amount of study time on economics required to move her grade from 60 to 70?

5. What is the opportunity cost to this student for the additional amount of study time on economics required to move her grade from 90 to 100?