Table 3-12 Barb and Jim Run a Business That Sets Up and Up

question 160

Multiple Choice

Table 3-12
Barb and Jim run a business that sets up and tests computers. Assume that Barb and Jim can switch between setting up and testing computers at a constant rate. The following table applies.
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-Refer to Table 3-12. Which of the following points would not be on Jim's production possibilities frontier, based on a 40-hour week?

• A)(0 computers set up, 60 computers tested)
• B)(40 computers set up, 30 computers tested)
• C)(60 computers set up, 12 computers tested)
• D)(72 computers set up, 6 computers tested)

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Definitions:

Optimal Amount

The quantity of production or consumption that maximizes efficiency or utility under given constraints.

Median Voter's Preference

A concept in political economy suggesting the outcome of a majority-vote decision process will most closely align with the preferences of the median voter.

Vote With Their Feet

The concept that people show their preferences or dissatisfaction with a situation by leaving an area or opting out of a system.

Free-Rider Problem

A situation where individuals consume more than their fair share of a public resource, or shoulder less of the cost of its production, benefiting from a good without properly paying for it.