Question

Billie is a trying to manage her time between studying economics and working. Suppose she has 10 hours available each week to either study or work. She makes $12 each hour babysitting local kids in her neighborhood, and each hour of studying increases her grade by 10% (in other words, if she does not study, she gets 0%, if she uses all of her time to study, she gets 100%). 1) Billie knows she needs at least a 70% to pass econ. To do that, she can only sacrifice three hours of her studying time. What is the opportunity cost of 3 hours studying? (1 pt)

Answer 1

Answer:-

Given That:-

Billie is a trying to mango her time between studying economics and working . Suppose she has 10 hours available each week to either study or work . she makes $12 each hour babysitting local kids in her neighborhood , and each hour of studying increases her grade by 10%

Bille gets $12 per hour for work and 10 percent extra in her grade for every hour of study. Total time alloted to her is 10 hours

1)Billie knows she needs at least a 70% to pass econ . To do that, she can only sacrifice three hours of her studying time . the opportunity cost of 3 hours studying time

That means , she has to steady for 7 hrs and work for 3hrs.

opportunity cost of 3 hours studying will be equal to income generated by her in 3 hrs.

So, it will Be $Y= W\times T$ Here, Y = Income

W = wage Rate

T = Time

  

Y = 12 x 3

Y = $36

2)Billie's PPF below . Be sure to label the axis assume she has increasing opportunity cost.

Grade A 100%, Total time=lohrs At Ohr work so hr study>100% At so hr work Ohr study $120 Income $1201 wax 2

3) Billie's PPF curve if she had 20 hours to study or work. The curve will move outwards indicating she can make more money as she had 20 hours to study or work. Maximum she can devote 10 hours to study for getting 100 percent marks. So she has atleast 10 hours time to devote for work.

Era - At ohrs works Grade looy. At to his week Grade 1004 wage - $120 At zohrs work Grade ou Income = $240 o $120 $240 Income