7. a. State and explain Arrow's Impossibility Theorem and its implications for social choice. b. State and explain the First and Second Welfare Theorem and discuss their economic implication and significance. c. Explain the concept of minimum efficient scale and its relevance for determining when a market is likely to become a monopoly or a competitive market.

7. a. State and explain Arrow's Impossibility Theorem and its implications for social choice. b. State and explain the First and Second Welfare Theorem and discuss their economic implication and significance. c. Explain the concept of minimum efficient scale and its relevance for determining when a market is likely to become a monopoly or a competitive market.

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 2SCQ: Return to the example in Figure 2.4. Suppose there is an improvement in medical technology that...

See similar textbooks

Similar questions

Which of the following assertions regarding social efficiency and social welfare iscorrect?a. They are the same conceptb. Social welfare includes both economic efficiency and equity whereas socialefficiency does not include equityc. Social efficiency includes both economic efficiency and equity whereas socialwelfare does not include equityd. Social efficiency is a higher standard than social welfare.
a) State and explain Arrow’s Impossibility Theorem and its implications for social choice. b) State and explain the First and Second Welfare Theorem and discuss their economic implication and significance. c) Explain the concept of minimum efficient scale and its relevance for determining when a market is likely to become a monopoly or a competitive market.
3.a. State and explain the First Theorem of Welfare Economics and discuss its economicimplications and significance.b. State and explain the Second Theorem of Welfare Economics and discuss its economicimplications and significance.c. Explain the concept of production possibility frontier and interpret the slope of theproduction possibility frontier in economic terms.
4) The fact that wants cannot be fully satisfied with available resources reflects the definition of A) the what tradeoff. B) scarcity. C) the big tradeoff. D) for whom to produce. 5) Suppose the Gallo sisters, Ernestine and Julia, were not on speaking terms with one another. They each raised grapes and peanuts. Ernestine could increase her output of grapes by one bushel if she reduced her output of peanuts by two bushels and Julia could increase her output of grapes by one bushel if she reduced her output of peanuts by four bushels. According to this information, Ernestine has: A) a comparative advantage in the production of grapes. B) a comparative advantage in the production of both goods. C) a comparative advantage in the production of peanuts. D) an absolute advantage in the production of peanuts 6) Factors of production are grouped into four categories: A) land, labor, capital, entrepreneurship B) land, labor, capital, money C) land, capital, money, entrepreneurship D) labor,…
2) Name two types of market failure. Explain why each may cause market outcomes to be inefficient.
10. A social indifference curve showsa . all allocations that yield the same total utility to individuals in the society.b. social attitudes toward equity.c. social attitudes toward efficiency.d. social utility possibilities as a function of resources.
Two of the most fundamental findings in welfare economics describe the relationship between markets and Pareto-efficiency. What are these findings? What are the conditions of Pareto-efficiency that competitive economies satisfy? What is the significance of these results for the discipline of Public Economics? With DIAGRAM (400-500 words)
What are the similarities between a consumers budget constraint and societys production possibilities frontier, not just graphically but analytically?
Return to the example in Figure 2.4. Suppose there is an improvement in medical technology that enables more healthcare wilt line same amount of resources. How would this affect the production possibilities curve and, in particular, how would it affect the opportunity cost of education? Figure 2.4 Productive and Allocative Efficiency
Explain why societies cannot make a choice above their production possibilities frontier and should not make a choice below it.
What is productive efficiency? Allocative efficiency?
What are four responses to the claim that people should not behave in the way described in this chapter?