Which of the following is true?There could be more than one correct answer.Productive efficiency is about resource use. We would be productively inefficient if wedo not use all our resources fully to produce maximum potential amounts of goodsands services.We could be productively efficient without being allocatively efficient.O We could be allocatively efficient without being productively efficient.If we are on our production possibilists frontier, the distribution of goods and serviceswill be necessarily equitable.Economic efficiency is about the wellbeing of population. If we are economicallyinefficient, we are wasting opportunities to improve the wellbeing of the people in thesociety.

When talking about productive efficiency, allocative efficiency and economic efficiency, it can be…

Which of the following is true? There could be more than one correct answer. Productive efficiency is about resource use. We would be productively inefficient if we do not use all our resources fully to produce maximum potential amounts of goods ands services. We could be productively efficient without being allocatively efficient. We could be allocatively efficient without being productively efficient. If we are on our production possibilists frontier, the distribution of goods and services will be necessarily equitable. Economic efficiency is about the wellbeing of population. If we are economically inefficient, we are wasting opportunities to improve the wellbeing of the people in the society.

Which of the following is true? There could be more than one correct answer. Productive efficiency is about resource use. We would be productively inefficient if we do not use all our resources fully to produce maximum potential amounts of goods ands services. We could be productively efficient without being allocatively efficient. We could be allocatively efficient without being productively efficient. If we are on our production possibilists frontier, the distribution of goods and services will be necessarily equitable. Economic efficiency is about the wellbeing of population. If we are economically inefficient, we are wasting opportunities to improve the wellbeing of the people in the society.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter19: Externalities And Public Goods

Section: Chapter Questions

Problem 19.2P

See similar textbooks

Similar questions

What is scarcity? Can you think of two causes of scarcity?
Explain why scarcity leads to tradeoffs.
It is clear that productive inefficiency is a waste since resources are used in a way that produces less goods and services than a nation is capable of. Why is allocative inefficiency also wasteful?
The first principle of economics in Chapter 1 is thatpeople face trade-offs. Use a production possibilitiesfrontier to illustrate society’s trade-off between two“goods”—a clean environment and the quantity ofindustrial output. What do you suppose determinesthe shape and position of the frontier? Show whathappens to the frontier if engineers develop anew way of producing electricity that emits fewerpollutants
The first principle of economics in Chapter 1 is thatpeople face trade-offs. Use a production possibilitiesfrontier to illustrate society’s trade-off between two“goods”—a clean environment and the quantity ofindustrial output. What do you suppose determinesthe shape and position of the frontier? Show whathappens to the frontier if engineers develop anew way of producing electricity that emits fewerpollutants cars. In an hour, Larry can either mow one lawn orwash one car; Moe can either mow one lawn or washtwo cars; and Curly can either mow two lawns orwash one car.a. Calculate how much of each service is producedin the following scenarios, which we label A, B,C, and D:• All three spend all their time mowing lawns. (A)• All three spend all their time washing cars. (B)• All three spend half their time on each activity. (C)• Larry spends half his time on each activity, whileMoe only washes cars and Curly only mowslawns. (D)b. Graph the production possibilities frontier for thiseconomy.…
why is the market for recycled aluminium good and the market for plastic bad in the US? Depict this with a firm input choice model. I understand that recycled plastic decreases in qualiy everytime it is recycled while aluminium does not and can be recylced without the decrease in quality, but I dont know how to depict this graphically
After Frank and Ruby engage in trade, each of thema. consumes at a point inside his or her productionpossibilities frontier.b. consumes at a point on his or her productionpossibilities frontier.c. consumes at a point outside his or her productionpossibilities frontier.d. consumes the same amounts of meat andpotatoes as the other.
Consider an economy that produces only two goods: Food and Clothing. The use of the resources of this economy produces monthly according to the table below: Alternative Clothes Foods A 0 9 B 3 7 C 5 4 D 6 two D 7 0 Ask if: a) Graph the production possibility curve of this economy b) Considering the same factor endowment in this economy, how would it be possible to increase the production of goods? c) Comment on the fact that this economy is actually producing 3 units of clothing and 5 of food d) Indicate the opportunity cost of situations A and C
Before Frank and Ruby engage in trade, each ofthema. consumes at a point inside his or her productionpossibilities frontier.b. consumes at a point on his or her productionpossibilities frontier.c. consumes at a point outside his or her productionpossibilities frontier.d. consumes the same amounts of meat andpotatoes as the other
When two individuals produce eff iciently and thenmake a mutually beneficial trade based on com para~tive advantage,a. they both obtain consumption outside their productionpossi bil ities frontier.b. they both obtain consumption inside their p rod u c ~tion possi bil ities frontier.c. one individual consumes inside her productionpossibilit ies frontier, while the other consumesoutside hers.d. each ind ividual consumes a poi nt on her ownproduction possibi lities frontier.
Assume an economy producing only two goods (shoes and computers) with a fixed amount ofproductive resources and technology and employing all its productive resources to the maximum.Production in this economy is subjected to the law of diminishing marginal returns and resourcesare assumed to be fully optimized. In addition, the cost of sacrificing shoes for computers andvice versa is 1. On the basis of the foregoing assumptions, answer the following questions:i. Draw the economy’s production possibility frontier on hindsight of the relevantassumption.ii. Why are points outside the frontier unattainable? iii. Identify three ways by which the economy can attain the level of production outside thePPF. iv. What happens to the PPF when technological change overwhelmingly favours theproduction of computers? v. What happens to the PPF when the economy discovers an improved technology forproducing shoes? vi. Assume now that the sacrifice ratio is greater than 1, show what will happen to the…
Using the appropriate diagram(s), explain briefly why the third general equilibrium efficiency condition (i.e. MRSxy = MRPTxy, where x and y are any two products), that connects consumption and production, must hold.