Answered: 2. Explain how do economists make…

Business

Economics

2. Explain how do economists make rationale choices to allocate the scarce resources?

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 13RQ: Explain why societies cannot make a choice above their production possibilities frontier and should...

See similar textbooks

Related questions

Q: 1. Scarcity, opportunity cost, and marginakanalysis Kate is training for a triathlon, a timed race…

A: Scarcity is one of the most essential concepts in economics.It means that the demand for a product…

Q: Explain the economic problem of scarce resources and unlimited wants.

A: Hi! Thank you for the question As per the honor code, We’ll answer the first question since the…

Q: 3) There are 4 people in the market and 5 potential outcomes as shown in the table below: Outcomes…

A: Pareto improvement: It refers to the improvement in a system where changes in the distribution of…

Q: Explain all resources that economy relies?

A: Resources are used together to create goods and services.

Q: Which of the below statements is (are) correct? ' 3 poir a. Ecological economics assumes that there…

A: The analysis of the interplay between the field of "economics" with nature/ecology, is done under…

Q: Question 3 Person 1 can allocate her 8-hour day between the production of two goods: A and B. Each…

A: Note: In the BNED Guidance, only the first question can be answered at a time. Resend the question…

Q: Derive and extensively discuss the equi-marginal principle.When it is in the two commodity cases?…

A: An equi -marginal principle plays an important role in cardinal utility analysis. The law of…

Q: G New tab google classroom - Search X A Classes…

A: Budget constraints display various pairings of two things that a buyer could buy based on his money.…

Q: a. What method is used to ration goods in a market economy?How does this rationing method influence…

A: The forces of supply and demand are used in market economies to set acceptable prices and quantities…

Q: Gorgeousleny of course as a consumer have so many thing in mind to buy aside from juice. with her…

A: Opportunity cost a good refers to the amount of consumption foregone of other goods in order to…

Q: Refer to Figure 3-23. For Bonovia, what is the opportunity cost of a pound of cheese? O a. 0.8…

A: Opportunity cost measures the trade-off that an individual faces in the production of two goods. The…

Q: Problem Attached

A: PPC(production possibility curve) shows various combination of two goods(here, police station &…

Q: This table refers to five possible buyers' willingness to pay for a case of Vanilla ice сream. BUYER…

A: Answer to question 61 based on the concept of consumer surplus

Q: 2.2. Market Equilibrium for Breakfast Cereal - 1 Scenario1: Consider wheat, an input into many final…

A: Wheat is used in making breakfast cereal. It is expected to have in reducing mountain snowpack in…

Q: 1. Consider a simple economy producing two goods: cars and milk. The following table gives several…

A: Dear student as you have posted multiple questions that too with multiple sub-parts but we are…

Q: Question-1 Bill can produce either tables or chairs. Bill can work up to 10 hours a day. His…

A: The given table shows the production combination of tables and chairs when Bill works for 10 hours.

Q: Identify the scarcity definition of economics from the following. a. None of these O b. ways to…

A: The basic problem of economy is the problem of scarcity. There are limited resources and unlimited…

Q: The basic economic problems of the society includes the ___. a. all of the above b. problem of…

A: According to Lionel Robbins, "Economics is the science that studies human behavior as a relationship…

Q: Person 1 can allocate her 8-hour day between the production of two goods A and B. Each hour devoted…

A: Person 1 can produce two goods, i.e., A and B Person 1 can produce 4 units of good A per hour Person…

Q: Refer to the table. Answer questions on the basis of the data given in the following table. Produc…

A: Opportunity cost: - opportunity cost is a forgone benefit which we could have earned by applying all…

Q: 20 Autarky is Production possibilities < consumption possibilities. TRUE or FALSE? False O TRUE…

A: Whrn talking about autarky, it is the situation when a country is producing at a self-sufficiency…

Q: Below is a production possibilities table for consumer goods (automobiles) and capital goods…

A: Meaning of Production Possibility Curve: The term production possibility curve refers to the…

Q: 1. A basis for the systematic study of economics exists because A Resources are scarce in relation…

A: 1. Economics is a social science which deals with the science of decision making, i.e. understanding…

Q: Mowgli and Baloo like to catch fish and pick bananas. Some information about their productive…

A: Opportunity cost is the cost you sacrifice in order to get one additional unit for another goods .

Q: 1. Cars(thousands) Beef (Thousands of tons) 10 mal B 2 9 с 4 7 6 E 8 O 0 a)Plot the production…

A: A Production Possibility Frontier is a curve depicting a combination of two goods that can be…

Q: After graduating from high school, Steve had three choices, listed in order of preference: (1)…

A: Answer (1): option d (the income he could have earned at the printed circuit board factory plus the…

Q: 4. Sketch the following budget constraints: 田 PX PY Income A RO 50 100 RO 5000 100 150 5000 50 200…

Q: (a) At point F, how many sweaters are being produced? How many hard drives? (b) Label points A-H as…

A: A PPF (production possibility frontier) shows the different combinations of two goods that a nation…

Q: 2. Give at least four examples of trade-offs when scarce resources are used. a. b. C. d.

A: Scarcity means resources are limited and our wants are unlimited. It means the demand exceeds the…

Q: 10. How prices allocate resources Suppose that there are three beachfront parcels of land available…

A: Person's Ability to buy shows maximum amount that he can spent on any good or service. A person…

Q: Provide short answer for the following. 1.Why is it that the production possibilities curve is…

A: As per our guidelines we are supposed to give the answer of only one question at a time. That's why…

Q: a Explain the economic link between scarcity, choice and opportunity cost.

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: 10. The opportunity cost of making cupcakes is lowest at which point? a A 6. 8 d. A and C 11. The…

A: ANSWER IS GIVEN BELOW

Q: The condition that arises because the available resources are insufficient to satisfy wants Select…

A: All the economic terms provide information about a specific market or economic condition that is…

Q: 4. The high cost of child care prevents some poor mothers from working. Consequently, countries…

A: The approach to provide the poor families a lump sum payment to spent on day care or on all the…

Q: Question 3 Person 1 can allocate her 8-hour day between the production of two goods: A and B. Each…

A: In an economy, production possibility curve is used to analyze the relationship between input and…

Q: What do you understand by people as a resource?

A: Human capital is defined as the economic value of the worker's education and training. To be…

Q: 4. Sketch the following budget constraints: PX PY Income A RO 50 100 RO 5000 100 150 5000 50 200…

Q: E Homework: Basic... Question 26, 1.1 Questio... Because resources are scarce, individuals are…

A: The resources availability in an economy is limited, thus such resources must be optimally utilized.…

Q: Question 3 Person 1 can allocate her 8-hour day between the production of two goods: A and B. Each…

A: The answer is - attainable, efficient.

Q: Suppose NAWEC charges D5 for every kilowatt hour of electricity for the first 1000 used in a month…

A: Hi, thanks for the question. As per the guidelines we are allowed to attempt the first question. If…

Question

2. Explain how do economists make rationale choices to allocate the scarce
resources?
V Dre th

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

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

Why do economists use the ceteris paribus assumption?
What are the similarities between a consumers budget constraint and societys production possibilities frontier, not just graphically but analytically?
Explain why individuals make Choices that are directly on the budget constraint, rather than inside the budget constraint DI outside it.
Would a research study on the effects of soft drink consumption on childrens cognitive development he a positive or normative statement?
Explain why societies cannot make a choice above their production possibilities frontier and should not make a choice below it.
Suppose Alphonsos town raised the price of bus tickets to 1 per trip (while file price of burgers stayed at 2 and his budget remained 10 per week.) Draw Alphonsos new budget constraint. What happens to file opportunity cost of bus tickets?
Suppose Alphonsos town raises the price of bus tickets from 0.50 to 1 and file price of burgers rises from 2 to 4. Why is file opportunity cost of bus tickets unchanged? Suppose Alphonsns weekly spending money increases from 10 to 20. How is his budget constraint affected from all three changes? Explain.
ASAP DECİSİON RULE FOR UTİLİTY MAXİMİZATİON As I understand we choose the good which has higher marginal utility per dollar . BUT MY QUESTİON İs that What if our budget is not end up and the marginal utility per dollar is same for both good What should we do at that point? PLEASE ANSWER MY QUESTİON DONT GİVE CLLASİC DEFİNİTİON
Below is the production possibilities table for consumer goods (maize) and capital goods (tractors):Type of productionProduction possibilities A B C D Emaize 30 27 21 12 0Tractors 0 2 4 6 8i. Show these data graphically. ii. If the economy is at point C, what is the cost of one more unit of maize? iii. Suppose improvement occurs in the technology of producing tractors but not in the technology of producing maize. Draw the new production possibilities curve. iv. Now assume that a technological advance occurs in producing maize but not in producing tractors. Draw the new production possibilities curve. v. Now draw a production possibilities curve that reflects technological improvement in the production of both goods.
Need hlep with this economics question
2. Which of the following is a normative statement? a. An increase in taxes raises the price of a product b. Vaccination is a method of fighting Covid -19 c. Government should Impose taxes on the cigarette. d. Studying more hours leads to an increase in your GPA.
Consider an economy with two people, Li and Carlo, and two commodities, clothing and food. Currently, Li and Carlo would both be willing to give up 0.5 articles of clothing for one piece of food. Further, the workers in town can, in a given day, produce either 10 pieces of clothing or 50 pieces of food. Is the allocation of resources in this economy Pareto efficient? If not, should there be more clothing or more food? (Let the MRS=MUfood/MUclothing=the value of food in terms of clothing=how much clothing we would trade for 1 more food)