-Grant Has Four Hours of Time to Divide Between Studying

question 26

Multiple Choice

$$\begin{array} { | c | c | c | } \hline { \text { Figure 1-1 } } \\\hline \begin{array} { c } \text { Haurs } \\\text { Studying }\end{array} & \begin{array} { c } \text { Physics } \\\text { Scare }\end{array} & \begin{array} { c } \text { Gedlay } \\\text { Scare }\end{array} \\\hline [ & 4 [ & 3 [ \\\hline 1 & 50 & 60 \\\hline 2 & 60 & 80 \\\hline 3 & 85 & 90 \\\hline 4 & 90 & 100 \\\hline\end{array}$$
-Grant has four hours of time to divide between studying for a physics exam and a geology exam.Figure 1-1 shows his estimates of the grades (on a scale of 0 to 100) that he could earn from studying a particular number of hours on each subject.If he plans on spending two hours studying each subject,what would be his opportunity cost of an additional hour studying physics?

• A) 10 points on his geology exam
• B) 20 points on his geology exam
• C) 80 points on his geology exam
• D) 25 points on his physics exam
• E) 85 points on his physics exam

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Definitions:

Exchange Rates

The value of one currency for the purpose of conversion to another; it determines how much of one currency can be exchanged for another currency.

Free Market

An economic system where prices for goods and services are determined by the open market and consumers, free from government intervention.

Subsidies

Financial support extended by the government to lower the price of goods or services or to support businesses.

Tulip Growers

Individuals or businesses specialized in cultivating tulips, often for the purposes of selling flower bulbs or cut flowers.