Question

This is Pete's PPC curve for staying in touch with friends via phone vs. his weblog during one week. If Pete only wants to make calls next week and ignore his weblog, how many calls can he make to his friends?

Answer 1

Answer:

D. When Pete writes one weblog entry he has time for six phone calls

Step-by-step explanation:

I just took the test

Answer 2

Answer:

Read off the intercept on the "Phone" axis

Step-by-step explanation:

Solution:

- The production possibility curve for peter to contact his friends via phone call vs weblog gives the combination of two ways to contact his friends with total remains constant.

- The trade-off between two ways " Pareto Optimality ". The maximum number of phone calls to contact his friends occurs when he "forgives" the method of weblog completely.

- This point on PPC is the intercept on the vertical axis ( Phone ). Read off the intercept on the "Phone" axis.