Production Possibility Frontiers: Studying or Socializing?
a) Draw a production possibilities curve for the pleasure you get between hanging with friends and from doing your Economics problem set. Are these activities complementary or are they substitutes? Does it matter which friend you are studying with? How do you show a tradeoff between them in your graph?
b) What happens to your production possibilities frontier if you the professor rewrites the textbook so that it is clearer? What happens if a new season of “Game of Thrones” comes on the air and you know that it would be fun to watch with your friends?
c) The professor redoes that problem set making it much harder and much less interesting? Show the new PPF. Your friend is very worried about passing the Economics course and insists that you work on the problem set together before socializing. Show the new PPF.