4. A decision at the margin Suppose that Malika is a diligent third-year college student. One Friday, she decides to start the day by working through 200 sample multiple choice problems to study for her statistics class. She starts work at 7:00 AM and uses a table to keep track of her progress throughout the day. She notices that as she the hours pass, it takes her more time to solve the problems. Time 7:00 AM 8:00 AM 9:00 AM 10:00 AM 11:00 AM Total Problems Solved 0 80 140 180 200 Use the table to answer the following questions. The marginal, or additional, gain from Malika's first hour spent working, from 7:00 AM to 8:00 AM, is The marginal gain from Malika's third hour spent working, from 9:00 AM to 10:00 AM, is problems. problems. The following week, Malika's statistics faculty advisor gives her some advice. In all their years of teaching they claim to observe that working on 50 multiple choice questions boosts a student's test score by about the same amount as spending an hour reviewing lecture notes. For simplicity, assume students are able to review lecture notes at a constant pace during each hour spent studying. 0 hours working on problems, 4 hours reading O 1 hour working on problems, 3 hours reading 2 hours working on problems, 2 hours reading O 3 hours working on problems, 1 hour reading Given this information, in order to use her 4 hours of time spent studying to get the highest possible test score, how many hours should she have spent solving multiple choice problems, and how many hours should she have spent reviewing lecture notes?

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Each term (3 months) the current group of economics students completed a questionnaire as to how much they would spend on new purchases compared to how much they would save/pay off bills, if they suddenly and unexpectedly received a check for $1,000. The average MPC is shown in the table below. Month in which student poll was taken Average of students’ responses as MPC March 0.41 June 0.30 September 0.22 December 0.56   What do these MPC’s imply about the students’ thinking over the course of the year?   (Enter response here.)   What is likely happening in the economy during the same period of time?