6. The following diagram is the \"Feasible Set\" of a student, showing the combi
ID: 1150352 • Letter: 6
Question
6. The following diagram is the "Feasible Set" of a student, showing the combinations of a. Points A and C are on the same feasible frontier, while at B she can get a higher grade for b. At D, the student is able to attain a higher grade but has less free time compared to C. c. The marginal rate of transformation at A is 3, meaning that the student can "transform" d. At C, the student can attain the grade of 50 for 20 hours of free time. Therefore for one her final grade and the hours of free time per day. Based on this information, indicate True (T) or False (F): the same hours of free time compared to C. Therefore, the student will choose B. Whether she would choose C or D then depends on her preferences. one hour of free time into 3 extra points on her grade. extra hour of studying, she can increase her grade by 2.5 points. 20 14 81 19 Free time Grade MRT 13 84 57 50 100 19 Hours of free time per day mes netral and hread Sunnose thatExplanation / Answer
(a) FALSE : Because feasible points are on the PPF and B is outside the PPF . Even though with the same hours of free time, the student can get higher grades at point B compared to point C. But he can't choose point B as it is outisde the PPF and not feasible for him with the given resources.
(b) FALSE. At D , the student is geeting higher grade but it lies inside the PPF , it implies that the student can be better off by allocating more time . Like on point A , the student get more free time and more grades . So, if there is a choice between D and C , then the student will not choose according to hi preferences because D point is inside the PPF . But between points C and A, the student will choose according his preferences.
(c) TRUE. Because MRT explains the transformation that can be done between two goods in order to be on the same PPF.
(d) FALSE. One extra hour of studying implies that the free time reduces to 19 hours. Then, grades will increase by 57-50 = 7 points and not by 2.5 points.
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