Problem
1. Interpret the phrases "There is no such thing as a free lunch" and "A free lunch is possible" in terms of the production possibilities curve.
2. Suppose, unfortunately, your mathematics and economics professors have decided to give tests 2 days from now and you can spend only a total of 12 hours studying for both exams. After some thought, you conclude that dividing your study time equally between each subject will give you an expected grade of C in each course. For each additional 3 hours study time for one of the subjects, your grade will increase one letter for that subject, and your grade will fall one letter for the other subject.
a. Construct a table for the production possibilities and corresponding number of hours of study in this case.
b. Plot these production possibilities data in a graph.
c. Does this production possibilities curve reflect the law of increasing opportunity costs? Explain.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.