Answered: 1.8) Consider the diagram below.…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter2: Choice In A World Of Scarcity

Section: Chapter Questions

Problem 21CTQ: It is clear that productive inefficiency is a waste since resources are used in a way that produces...

See similar textbooks

Related questions

Question

Please tell me which of the multiple choices are correct in question 1.8)1.9)1.10) just state the correct ones please thank you please bear in mind they are separate questions and not related to each other so awnser each individually as there is no link between them the diagram which is needed for solving question 1.8 only, is attached.Other two questions don't have a diagram they are just multiple choice questions

1.8)

Consider the diagram below. Legislation allows Angela, a farmer, to be at point F.

(SEE ATTACHED PICTURE)

If Angela, a farmer, and Bruno, her landlord, can bargain costlessly:

Select one or more:

a. The final outcome will be unchanged.

b. The final outcome will be a Pareto improvement.

c. The final outcome could be anywhere on the "contract curve" of Pareto-efficient points between C and D.

d. The final outcome will be somewhere between (or at) points C and I.

1.9)

Select one or more:

a. A Pareto efficient outcome is where you cannot make anyone better off without someone else ending up worse off.

b. All are happy with their share of income in a Pareto eﬃcient outcome.

c. There is only ever one Pareto eﬃcient outcome.

d. If two people have £100 to split, any split in which all the money is used up is Pareto-Efficient, even if one person gets none.

1.10)

Imagine the GDP per capita of a country doubles every one hundred years. What would the shape of a linear-scale graph and a ratio-scale graph be?

Select one or more:

Linear scale: an upward-sloping curve with increasing slope (called convex shape)

Ratio scale: an upward-sloping straight line

Linear scale: an upward-sloping straight line

Ratio scale: a straight horizontal line

Linear scale: an upward-sloping straight line

Ratio scale: an upward-sloping curve with decreasing slope (called concave shape)

Linear scale: an upward-sloping convex curve

Ratio scale: an upward-sloping convex curve

Angela's reservation
indifference curve, IC Angela's best feasible
12
indifference curve when
an independent farmer,
D
F
FF: Angela and Bruno combined
16
24
Angela's hours of free time
Bushels of grain
00

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions