2: Self-Check Questions

1. Residents of the town of Smith-field like to consume hams, but each ham requires 10 people
to produce it and takes a month. If the town has a total of 100 people, what is the maximum
amount of ham the residents can consume in a month?
- Each ham requires 10 people to produce it and if the town has a total of 100 people. It
means the maximum amount of ham the residents can consume in a month is 10.
Solution, find how many people will produce hams in a month
-10 people each ham
- 100 people
- 100/10
= 10

2. A consultant works for $200 per hour. She likes to eat vegetables, but is not very good at
growing them. Why does it make more economic sense for her to spend her time at the
consulting job and shop for her vegetables?
- She is very active at her consulting job but opposite growing vegetable. In case the
consultant chooses growing vegetables, she would lose the time and opportunity. It would make
more sense for her to spend her time at the consulting job because the consultant would have
enough money to buy the vegetables that the consultant needs instead of growing them.

3. A computer systems engineer could paint his house, but it makes more sense for him to hire
a painter to do it. Explain why. *
- Its obviously that the engineer is better at computer science than painting because it
makes more sense for him to hire a painter to do it than painting them. An engineer has
opportunity to earn money and it cost of an hour of working time is higher than he could pay a
painter for an hour of working time. As the result, he hired a painter because he don’t want to
paint his house.