The production possibility frontier (PPF) in the Grossman model is as below. Individuals would never choose __ as an optimal allocation of Z and H. B D A E Hmin N.
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- What does the Pareto efficiency criterion state? A. An allocation of resources is efficient if it maximizes government revenue B. An allocation of resources is efficient if it maximizes producer surplus C. An allocation of resources is efficient if it is impossible to make someone better off without making someone else worse off D. An allocation of resources is efficient if it allocates resources equally among all individualsThe fundamental problem of welfare economics is to determine at which feasible allocation the economy should operate. Discuss the challenges of aggregating individual preferences into social preferences in order to identify the socially optimal allocation.1. Consider allocations b-f (meaning points a, b, and f). Which allocations(s) A. are better for Ross than “a” (ignoring Rosa)? B. are better for Rosa than “a” (ignoring Ross)? C. are worse for both Ross and Rosa than “a”? D. are better for both Ross and Rosa than “a”? E. are Pareto superior to “a”?
- Consider the figure attached below which shows the combined production function of Anna and Bob. Assume a case where Anna works on the land owned by Bob. By referring to the diagram above, explain how does Anna ranks the possible allocations marked as X, Y, Z and A according to production functions and their curves and slopes ? Question is completeQ16 Pareto optimality refers to the maximum efficient allocation of economic resources such that there is no way that one's wealth another person worse off: this statement is choices - irrelevant -conditionally true -always true -always falseFigure shows the combined production function of Angela and Bruno. If the government introduces a new social welfare program to cater to the poor of the society, wherein the reservation wage increases from 2 bushels of wheat to 6 bushels of wheat how would you model the situation? Draw a new diagram to show the impact of this welfare program and comment on who do you think would benefit from this intervention? Additionally, does the outcome of this intervention results in an allocation which is a pareto efficient one? Explain your reasoning. (Please Make sure your diagram is fully labelled)
- Consider the figure attached which shows the combined production function of Anna and Bob.Suppose a scenario where the Government has introduced a new social welfare program to cater to the poor of the society, wherein the reservation wage increases from 2 bushels of wheat to 6 bushels of wheat. Draw a new diagram to show the impact of this welfare program and comment on who do you think would benefit from this intervention? Additionally, does the outcome of this intervention results in an allocation which is a pareto efficient one? Explain your reasoning. (Make sure your diagram is fully labelled)The allocation where D1, D2, D3, D4, and D8 consume and S1, S2, S3, S4, and S5 sell is not Pareto efficient because... (hint: you can prove that an allocation is not Pareto Efficient by showing that there's a better way to allocate the widget. Which of the following choices is better (more efficient) than the proposed allocation where D1, D2, D3, D4, and D8 consume and S1, S2, S3, S4, and S5 sell?) Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Analyze how pareto efficiency is achieved from consumption activities in an economy
- Q. It is possible to have a Pareto efficient allocation where everyone is worse off than they are at an allocation that is not Pareto efficient?According to the welfare theory covered in the unit, which of the following statements is true? a. A general-equilibrium Pareto-efficient outcome will always be welfare maximising, according to the First Welfare Theorem. b. A general-equilibrium Pareto-efficient outcome will always be welfare maximising, according to the Second Welfare Theorem. c. A general-equilibrium Pareto-efficient outcome may not be welfare maximising, due to lack of equity in the distribution of the resources of an economy. d. A general-equilibrium Pareto-efficient outcome will always be welfare maximising, because all Pareto-efficient outcomes maximise welfare by definition.Consider a Production Possibility Frontier that bows outward. Suppose the production of one good increases. As a result opportunity cost of producing this good will __________ because productive resources ___________________ in their suitability for producing different kinds of goods. A. increase; differ B. decrease; are the same C. increase; are the same D. decrease; differ