Jose has one evening in which to prepare for two exams and can employ two possible strategies:

The opportunity cost of receiving a 90 on the Statistics exam in terms of the number of points on the Economics exam is
A) 79.
B) 17.
C) 11.
D) 90.

Question

Jose has one evening in which to prepare for two exams and can employ two possible strategies:

The opportunity cost of receiving a 90 on the Statistics exam in terms of the number of points on the Economics exam is
A) 79. 
B) 17. 
C) 11. 
D) 90.

Quizplus · Accepted Answer

We need to determine which strategy will allow Jose to perform better on both exams. We can start by calculating the opportunity costs of receiving a 90 on the Statistics exam for each strategy.

For Strategy 1, the opportunity cost of receiving a 90 on the Statistics exam is 21 points on the Economics exam (since he can only spend 3 hours studying for Economics).

For Strategy 2, the opportunity cost of receiving a 90 on the Statistics exam is 17 points on the Economics exam (since he can spend 5 hours studying for Economics).

Since the opportunity cost of Strategy 2 is lower, it seems like the better choice. Therefore, Jose should spend more time studying for Economics and follow Strategy 2.

Jose Has One Evening in Which to Prepare for Two