Q: Explain the knowledge problem faced when attempting to plan an economy. Does this have any relation…
A: Government must use fiscal policy to increase employment by increasing aggregate demand in order to…
Q: Question 18 Which of the following takes a holistic perspective of the economy? O General…
A: A holistic perspective of the economy believes in the overall well-being of the society, including…
Q: Marx says ““it is not the consciousness of men that determines their being, but, on the contrary,…
A: Marx says ““it is not the consciousness of men that determines their being, but, on the contrary,…
Q: How will apply the principles of shifting demand and supply in economics
A: There are 2 important principles that apply in shifting demand and supply in economics. The demand…
Q: Discuss the concept of Economic Goods.
A: Meaning of Microeconomics: The term macroeconomics refers to that situation under which the…
Q: Which of the following is true of an economic theory? It uses complex mathematical equations to…
A: It is a bunch of principles and ideas which explains the functioning of the economy or various…
Q: Difference between the Partial equilibrium Approach and the general equilibrium Approach? Show their…
A: A partial equilibrium is one that is obtained by evaluating only the effects of two variables at a…
Q: Classified the following as microeconomics or macroeconomic and provide a justification for your…
A: Microeconomics is defined as the study of economics which deals with the decisions made by…
Q: Based on this model, households earn income when purchase in factor markets. Suppose Alyssa earns…
A: Households earn income when Firms purchase Labor (factors of production) in factor market.
Q: Tick (√) in the appropriate column to indicate whether each of the following statements belong to…
A: Microeconomics is the study of individual behavior and how individuals make economic decisions in…
Q: Demand, Supply and Equilibrium Draw curves that represent the following relationship a. The cost…
A: As cost or price increases, demand declines, ceteris paribus. This is in parity with the Law of…
Q: When the net benefits of all economic activities are not maximized, economists say the allocation of…
A: If the net benefits of all economic activities are not maximized means, the resource allocated is…
Q: When we analyze the general equilibrium model, why do we ignore the equilibrium for the non-monetary…
A: The general equilibrium model is one of the models which is used for analyzing the economy as a…
Q: Determine whether each of the following topics would more likely be studied in microeconomics or…
A: Microeconomics deals with the behavior of an individual, firm or a specific market, while…
Q: State the first and second fundamental theorem of welfare economics and outline the fundamental…
A: First fundamental theorem states that every competitive equilibrium allocation is a pareto efficient…
Q: Classify the following as microeconomics or macroeconomics and provide a justification for your…
A: Microeconomics deals with an individual(personal, industrial or organizational) economic problem and…
Q: Discuss whether merit goods and demerit goods are best provided by the market economy
A: Merit goods are those commodities and services whose true personal benefit is not realised by a…
Q: According to the welfare theory covered in the unit, which of the following statements is true? a.…
A: When talking about welfare theory, there are two theorems to understand the contribution of…
Q: The circular-flow diagram illustrates that, in marketsfor the factors of production,a. households…
A: Option ‘a’ is correct Option ‘a’- The circular-flow model has the market for the factors of…
Q: Japanese fans of cake, buttered toast and Hollandaise sauce may need to start hoarding soon. The…
A: Market demand for a commodity can change as a result of a change in consumers income, their tastes…
Q: What is the difference between an economu based on individualism and an economy based on…
A: Economy based on individualism :- The basic feature of the economy is that it provides freedom to…
Q: Suppose Eleanor earns $625 per week working as a doctor for the Medical Clinic. She uses $8 to order…
A:
Q: Which of the following statements most likely lies within the realm of microeconomics? A.…
A: Microeconomics and macroeconomics are two major branches of Economics.
Q: Indicate whether each of the following statement applies to microeconomics or macroeconomics: An…
A: Microeconomics deals with the components and aspects of the micro-level, where micro means on a…
Q: The problem of choice is called the Economic problem True/False
A: The biggest problem the economy has to deal with is the problem of scarcity which means that the…
Q: Of the statements below only ONE is not a characteristic of a market economy (as stated in the…
A: An economic system is a way for governments or communities to distribute and organise resources,…
Q: What is the difference between an economy based on individualism and an economy based on…
A: OVERVIEW OF ECONOMIC INDIVIDUALISMEconomic individualism is based on the belief that the government…
Q: Distinguish between economic goods and non-economic goods as stated by Menger.
A: Goods are products that meet human desires and give utility, such as a gratifying product purchased…
Q: Find a movie that has some sort of economic principle(s) in a particular scene. Give a brief…
A: One of the movies that has some sort of economic principle in it is the famous movie Batman "the…
Q: Based on this model, households earn income when purchase in markets for factors of production.…
A: The circular flow of income model states that money flows from firms to households in the factors of…
Q: Provide two microeconomic statements and two macroeconomic statements
A: Macroeconomics studies the economy as a whole and not just on specific companies. For example,…
Q: Show in the graph how the curves and equilibrium would change if: a) The government started to…
A: Efficiency wage theory, in general, speaks of paying/giving higher wages to your workers/employees…
Q: Identify each of the following topics as being part of microeconomics or macroeconomics: the effect…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: The fundamental problem of welfare economics is to determine at which feasible allocation the…
A: Welfare Economics refers to the allocation of limited resources at dispersal to an efficient…
Q: Marx writes that, in order to understand surplus-value, we have to divide the workday into two…
A: Surplus value is defined in Marxian economics as the difference between the amount raised via the…
Q: An economy will be operating on a point inside of its production possibilities frontier if there is…
A: The production possibility curve is defined as a curve which shows various combinations of two goods…
Q: Based on this model, households earn income when purchase in markets for factors of production.…
A: Factors of production refer to the inputs used to produce goods and services. Labor is an example of…
Q: What is Production Efficiency and Inefficiency in economics? Explain with the help of a diagram.
A: The output approach, also known as the production approach, calculates GDP as the difference between…
Q: ased on this model, households earn Income when purchase in markets for factors of production.…
A: A circular flow model shows how income flows through different sectors of an economy.
Q: No more than 100 words for the answer: Explain briefly how property law can serve society’s interest…
A: The law that governs the area of law that in turn governs various ownership forms in personal and…
Q: Taxes adversely affect the allocation of resources in society because... A) The taxes collected are…
A: Taxes are imposed by the government. It is a compulsory charge which has to be paid by all the…
Q: Production Economy Describe the production economy. Prove the first theorem of welfare.
A: Production economy is the economic system where the process of conversion of raw materials into…
Q: Your niece owns a different type of chicken restaurant. She specializes in chicken and noodles and…
A: The economics as a study is based upon the idea that the resources which the economies have with…
Q: Discuss the distinction and similarities between partial and general equilibrium analysis.
A: Equilibrium is the situation where demand and supply which are two main important market forces that…
- What are the implications of the fundamental theorems of welfare economics for the organization of an economy?
Step by step
Solved in 2 steps
- What assumptions are required for the two fundamental theorems of welfare economics to hold? Are these so strong that the theorems are devoid of practical relevance?The 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.What is an analytical device used to model welfare economic theory.
- define economic welfare?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.Indicate whether the statement is true or false, and justify your answer.Contrary to the predictions of welfare economics, people are willing to pay to have constraints place on themselves.
- The problem of choice is called the Economic problem True/FalseState the first and second fundamental theorem of welfare economics and outline the fundamental differences in the two theorems.A result of welfare economics is that the equilibrium price of a product is considered to be the best price because it
