Question

which of the following represents Aruba's production possibilities frontier when 100 labor hours are available?

Answer 1

The table says that it takes 2 labor hours to make 1 cooler

It's asking which PPF corresponds to 100 labor hours total. So look for the graph where it has 50 labor hours for the cooler (and only the cooler)

why 50? because 100/2 = 50
if you devote the entire economy to making coolers, then 100 labor hours will yield 50 coolers. No radios will be made

Another way to think of it

(50 coolers)*(2 labor hours/1 cooler) = 50*2 = 100 labor hours total

Answer 2

can you please be a little more clearer? I understand what you're swing but I'm still not 100% sure how we get the answer @jim_thompson5910

Answer 3

saying*

Answer 4

The axis that corresponds to "cooler" is the x axis

which graph has the point (50,0) on it? that would be choice C. The other graphs don't have this point

The point (50,0) means x = 50 and y = 0

x = 50 means 50 coolers are made since x is the number of coolers made
y = 0 means NO radios are produced

Answer 5

again it takes 2 hours for 1 cooler to be made

so 50*2 = 100 hours total are devoted to making only 50 coolers

we can't make any more coolers and we can't make any radios in this extreme case

Answer 6

see attached

Answer 7

here is another case

Answer 8

got ti so you essentially have to divide both of them by 100

Answer 9

yes

notice how it takes 5 hrs to make a radio

(20 radios)*(5 hrs/1 radio) = 20*5 = 100

so this is more evidence that the answer is C

Answer 10

@jim_thompson5910 thanks so much you really helped me understand!

Answer 11

you're welcome

Answer 12

would you mind helping me with something else

Answer 13

sure

Answer 14

i really don't understand how they're
getting the answer

Answer 15

Do you see how it takes 40 labor hours to make 40 units of cheese for England?

Answer 16

yes you multiply by 40 right?

Answer 17

I'm just looking at the table, but yes

Answer 18

for england, it takes 40 hrs to make 40 units of cheese

so it takes 20 hrs to make 20 units of cheese

I'm cutting this in half because there's equal time devoted to both cheese and bread (20 hrs for cheese, 20 hrs for bread)

Answer 19

spain can make 10 units of cheese in 40 hrs

so spain can make 10/2 = 5 units of cheese in 40/2 = 20 hrs

Answer 20

so for just cheese only
AND
in the timespan of 20 hours
we know that...


england can make 20 units of cheese
spain can make 5 units of cheese


in total, those 20 labor hours lead to 25 total units of cheese

Answer 21

hopefully you're able to follow?

Answer 22

yes I'm following

Answer 23

so for bread you're going to divide 10/2 =5 so 5 units of bread in 20 hours for england

Answer 24

for spain it's 2.5 in 20 hours

Answer 25

so it's 7.5 units of bread in 20 hours !!
omg thanks so much i get it now

Answer 26

yep you nailed it. Nice job

Answer 27

Thanks so much Jim

Answer 28

you're welcome