Please answer the following questions and carefully label , and briefly explain the following diagrams. You are welcome to write any accompanying text by hand. 5. Show how the diagram changes if there is an improvement in the technology of food production. Hint: this means that for a given number of hours’ work, Angela can produce more.    5.2. If Angela is an independent farmer, show how the technology improvement might cause her optimal labour supply to either fall or rise. Which seems more consistent with the data?

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Please answer the following questions and carefully label , and briefly explain the following diagrams. You are welcome to write any accompanying text by hand.

5. Show how the diagram changes if there is an improvement in the technology of food production.
Hint: this means that for a given number of hours’ work, Angela can produce more. 

 

5.2. If Angela is an independent farmer, show how the technology improvement might cause her
optimal labour supply to either fall or rise. Which seems more consistent with the data? 

12
MRS = MRT
9.
Angela's indifference
curves
Angela's feasible
frontier
16
24
Angela's hours of free time
MRS = MRT
The MRS is the slope of the indifference curve. The trade-off she is willing to make between
grain and free time. The MRT is the slope of the feasible frontier: the trade-off she is
constrained to make. At point C, the two trade-offs balance.
Bushels of grain
Transcribed Image Text:12 MRS = MRT 9. Angela's indifference curves Angela's feasible frontier 16 24 Angela's hours of free time MRS = MRT The MRS is the slope of the indifference curve. The trade-off she is willing to make between grain and free time. The MRT is the slope of the feasible frontier: the trade-off she is constrained to make. At point C, the two trade-offs balance. Bushels of grain
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