↑HospitalsBProduction Possibilities Boundaryiii.DсSchoolsi.If points A, B, C and D represent different combinations that a provincial government can choose bFigure 1 demonstrates that governments:a. must allocate resources efficiently at all timesb. are not constrained by budgets, unlike private firms and householdsc. have to consider opportunity cost when allocating their resourcesd. have an incentive to provide too many schools and too few hospitalsii.If the government is currently spending on schools and hospitals as indicated by point A, a move towould mean (see Figure 1 above):a. less spending on hospitalsb. there is no opportunity cost associated with devoting more resources to schoolsc. less spending on schoolsd. less spending in totalPoint B in Figure 1 above is:a. desirableb. unattainablec. an example of what can happen if resources are not fully employedd. an efficient combination

The production possibility curve is defined as the various combinations of goods or commodities at…

Hospitals ↑ ii. iii. B Production Possibilities Boundary D с i. If points A, B, C and D represent different combinations that a provincial government can choose b Figure 1 demonstrates that governments: Schools a. must allocate resources efficiently at all times b. are not constrained by budgets, unlike private firms and households c. have to consider opportunity cost when allocating their resources d. have an incentive to provide too many schools and too few hospitals If the government is currently spending on schools and hospitals as indicated by point A, a move to would mean (see Figure 1 above): a. less spending on hospitals b. there is no opportunity cost associated with devoting more resources to schools c. less spending on schools d. less spending in total Point B in Figure 1 above is: a. desirable b. unattainable c. an example of what can happen if resources are not fully employed d. an efficient combination

Hospitals ↑ ii. iii. B Production Possibilities Boundary D с i. If points A, B, C and D represent different combinations that a provincial government can choose b Figure 1 demonstrates that governments: Schools a. must allocate resources efficiently at all times b. are not constrained by budgets, unlike private firms and households c. have to consider opportunity cost when allocating their resources d. have an incentive to provide too many schools and too few hospitals If the government is currently spending on schools and hospitals as indicated by point A, a move to would mean (see Figure 1 above): a. less spending on hospitals b. there is no opportunity cost associated with devoting more resources to schools c. less spending on schools d. less spending in total Point B in Figure 1 above is: a. desirable b. unattainable c. an example of what can happen if resources are not fully employed d. an efficient combination

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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