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MUF0061 Economics Unit 1 - Semester 1, 2025 Shipwrecked on a Desert Island (5 - 10 minutes)

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Rupert has been shipwrecked on a desert island and has to make a plan for survival. He can use his scarce resource, labour, to catch fish or pick coconuts from the trees. His labour is measured in hours per day. He has approximately 16 hours to work, after sleeping. The Production Possibilities Frontier diagram below outlines the maximum combinations of fish and coconuts he can catch and pick during each day. Match up the points on the diagram with the descriptions of what they are showing. 1: A situation that is impossible to achieve in the limited time available each day ____ 2: A situation in which Rupert spends all his time picking coconuts from trees ____ 3: A situation where Rupert is lazy and sleep lays in the sun for most of the day ____ 4: A situation in which Rupert spends some of his time fishing and some of his time picking coconuts from the trees ____ 5: A situation in which Rupert spends all his time fishing ____

Options
A.E
B.A
C.B
D.C
E.D
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To approach this matching question, I will first describe what each labeled point on the Production Possibilities Frontier (PPF) represents in the context of Rupert’s limited 16 hours of labor per day. - Point E: This point lies outside the PPF curve, meaning it represents a combination of fish and coconuts that Rupert cannot achieve with the given 16 hours. It is unattainable in a day given current resources. - Point A: This point sits on ......Login to view full explanation

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