Mary has only four hours to study for her two final examinations. The grades she will receive in each course depends on how much she will study as the following table indicates:

# of Hours
Grade in Econ
(Grade Point)
Grade in Accounting
(Grade Point)
0
C- (1.67)
F (0.00)
1
B- (2.67)
C- (1.67)
2
B+ (3.33)
B- (2.67)
3
A- (3.67)
B (3.00)
4
A (4.00)
B (3.00)

Which of the following would be on her grade-possibilities frontier?

F in accounting, C- in economics
B in accounting, C- in economics
B in accounting, B- in economics
B in accounting, A- in economics


Suppose that Mary is considering studying four hours for her economics final. Compared to this use of time, what would the costs and benefits be for her to study an hour for accounting?

A loss of .33 grade points in economics and no gain in grade points in accounting
A loss of .33 grade points in economics but a gain of 1.67 grade points in accounting
A loss of 1 grade point in economics and no gain in grade points in accounting
A loss of 1 grade point in economics but a gain of 1.67 grade points in accounting


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