Suppose that in Figure 2-1, a student currently is allocating her study time in such a way that she is earning a C in mathematics and a C in economics.

If the student desires to boost her economics grade to an A, how must she alter the number of hours per week that she studies economics? How must she alter the number of hours per week that she studies mathematics?

Figure 2-1

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FIGURE 2-1 Production Possibilities Curve for Grades in Mathematics and Economics (Trade-Offs) We assume that only 6 hours can be spent per week on studying. If the student is at point x, equal time (3 hours a week) is spent on both courses, and equal grades of C will be received. If a higher grade in economics is desired, the student may go to point y, thereby receiving a B in economics but a D in mathematics. At point y, 2 hours are spent on mathematics and 4 hours on economics. Expected Grade in Mathematics e F All 6 hours spent on mathematics 6 hours study time per week 4 hours on mathematics 2 hours on economics X 3 hours on mathematics 3 hours on economics 2 hours on mathematics 4 hours on economics. V All 6 hours spent on economics D C B A Expected Grade in Economics