Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Question
Chapter 6, Problem 7MCQ
To determine
To find:
The option which correctly shows the allocation of resources.
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When the net benefits of all economic activities are not maximized, economists say the allocation of resources is _______ .
Group of answer choices
A. poorly done
B. efficient
C. inefficient
D. incorrect
Which of the following is true for expansion path?
a. It shows all the possible combinations on budget line that can be consumed by the
consumer.
b. It shows all the possible all optimal cost minimizing points for the input at each
level of output.
c. It shows all the pareto efficient with the final allocation of goods.
d. It shows all the possible combination that can be produced using the constant
technology and resources.
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Chapter 6 Solutions
Foundations of Economics (8th Edition)
Ch. 6 - Prob. 1SPPACh. 6 - Prob. 2SPPACh. 6 - Prob. 3SPPACh. 6 - Prob. 4SPPACh. 6 - Prob. 5SPPACh. 6 - Prob. 6SPPACh. 6 - Prob. 7SPPACh. 6 - Prob. 8SPPACh. 6 - Prob. 9SPPACh. 6 - Prob. 10SPPA
Ch. 6 - Prob. 11SPPACh. 6 - Prob. 12SPPACh. 6 - Prob. 1IAPACh. 6 - Prob. 2IAPACh. 6 - Prob. 3IAPACh. 6 - Prob. 4IAPACh. 6 - Prob. 5IAPACh. 6 - Prob. 6IAPACh. 6 - Prob. 7IAPACh. 6 - Prob. 8IAPACh. 6 - Prob. 9IAPACh. 6 - Prob. 1MCQCh. 6 - Prob. 2MCQCh. 6 - Prob. 3MCQCh. 6 - Prob. 4MCQCh. 6 - Prob. 5MCQCh. 6 - Prob. 6MCQCh. 6 - Prob. 7MCQ
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- PPFarrow_forwardFrom an economic perspective, the outcome that yields the greatest economic surplus is the: Select one: a. least cost outcome. b. outcome with the highest benefit of capital in a market. c. outcome of least benefit-cost gap. d. most efficient distribution of scarce resources. e. Answers C and D are correct.arrow_forwardSuppose a nation has a total of 12 units of labor, which can be used to produce either guns orbutter. One gun takes 6 units of labor to produce and 1 butter takes 2 units of labor toproduce.Evaluate the allocation of resources of this country based on the following points.• Reason for the scarcity that exists in this economy. Use the data as evidence of yourreasoning.• Maximum quantity of guns that can be produced.• Maximum quantity of butter than can be produced.• Diagram which represents the nation’s production possibility curve.• Opportunity cost of guns in this nation• Reason why the nation can’t produce both 3 guns and 4 butters.• Reason why the nation shouldn’t produce both 1 gun and 2 butters.arrow_forward
- 10. In terms of Adam Smith’s concept of the invisible hand, an efficient overall allocation of resources is likely to result from?arrow_forward1. A basis for the systematic study of economics exists because A Resources are scarce in relation to material wants. B Governments interfere because there is always an efficient allocation of scarce resources. C Individual economic actors never make rational economic decisions. D Resources are plentiful relative to wants, therefore an allocation problem arises. E The market consistently fails to allocate resources efficiently, thereby establishing the need to study economics. 2. The law of increasing opportunity cost is reflected in the shape of the A Production possibilities curve concave to the origin. B Production possibilities curve convex to the origin. C Horizontal production possibilities curve. D Straight-line production possibilities curve. E Upward-sloping production possibilities curve. 3. A production possibility frontier shows A The maximum combination of inputs that can be used to produce output in a typical economy. B The maximum revenue that can be generated from the…arrow_forwardCan you help me with below homework question. Which of the following economic criteria is concerned with the overall fairness of the distribution and use of scarce resources? a) Marginal utility of consumption.b) Production efficiency.c) Equity.d) Allocation efficiency.arrow_forward
- Any point within a production possibility frontier indicate _________________ combinations in the production of the two goods or services and _______________ in terms of the use of resources. a.Unattainable; efficiency b.Attainable; inefficiency c.Attainable; efficiency d.Unattainable; inefficiencyarrow_forwardEconomics is a social science which deals with human behavior as a relationship between ________. a. unlimited buyers and limited sellers b. consumption and production c. unlimited wants and scarce resources d. unending wants and limited peoplearrow_forwardThe production possibilities frontier curve illustrates that a. an economy's capacity to produce is unrelated to its population. b. if all the resources of an economy are being used efficiently, more of one good can be produced only if more of another good is produced. c. an economy will automatically move toward a point at which all of its resources are being used inefficiently. d. if all the resources of an economy are being used efficiently, more of one good can be produced only if less of another good is produced.arrow_forward
- When an allocation is changed and someone becomes better-off, then we can call this a Pareto-Improvement, so long as ____. A. All other parties become better-off B. All other parties become worse-off C. Someone else is made worse-off D. No one is worse-offarrow_forward5. The first fundamental theorem of welfare economics states:a. Pareto improvements lead to increased competition.b. Competitive markets lead to a Pareto efficient allocation.c. No one can be made better off without someone is being made worse off.d. Competitive markets lead to externalities and information problems.arrow_forwardStephen and Rebecca both enjoy drinking coffee. The marginal benefit that each places on the coffee they drink is given in the following table: Number of cups of coffee First cup Second cup Third cup Marginal Marginal Benefit Benefit for for Rebecca ($) 10 a) $9 b) $7 8 Fourth cup Fifth cup 2 c) $5 d) $3 6 4 Stephen ($) 15 12 9 6 On a recent day on campus Rebecca purchased a cup of coffee and Stephen purchased three cups of coffee. What price for a cup of coffee would be consistent with this behaviour? 3arrow_forward
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