Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Chapter 5.1, Problem 4RQ
To determine
Identify the examples for each allocation method when it works badly.
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Are allocations methods more or less efficient than other methods?
Is point E Pareto efficient allocation? Explain your answer.
Explain the statement true or false. Give an example to explain your answer.
"It is possible to have a Pareto efficient allocation where someone is worse off than she is at an allocation that is not Pareto efficient"
Chapter 5 Solutions
Macroeconomics
Ch. 5.1 - Prob. 1RQCh. 5.1 - Prob. 2RQCh. 5.1 - Prob. 3RQCh. 5.1 - Prob. 4RQCh. 5.2 - Prob. 1RQCh. 5.2 - Prob. 2RQCh. 5.2 - Prob. 3RQCh. 5.2 - Prob. 4RQCh. 5.2 - Prob. 5RQCh. 5.2 - Prob. 6RQ
Ch. 5.3 - Prob. 1RQCh. 5.3 - Prob. 2RQCh. 5.3 - Prob. 3RQCh. 5.4 - Prob. 1RQCh. 5.4 - Prob. 2RQCh. 5.4 - Prob. 3RQCh. 5.4 - Prob. 4RQCh. 5 - Prob. 1SPACh. 5 - Prob. 2SPACh. 5 - Prob. 3SPACh. 5 - Prob. 4SPACh. 5 - Prob. 5SPACh. 5 - Prob. 6SPACh. 5 - Prob. 7SPACh. 5 - Prob. 8SPACh. 5 - Prob. 9SPACh. 5 - Prob. 10SPACh. 5 - Prob. 11APACh. 5 - Prob. 12APACh. 5 - Prob. 13APACh. 5 - Prob. 14APACh. 5 - Prob. 15APACh. 5 - Prob. 16APACh. 5 - Prob. 17APACh. 5 - Prob. 18APACh. 5 - Prob. 19APACh. 5 - Prob. 20APACh. 5 - Prob. 21APACh. 5 - Prob. 22APACh. 5 - Prob. 23APACh. 5 - Prob. 24APACh. 5 - Prob. 25APACh. 5 - Prob. 26APACh. 5 - Prob. 27APA
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- Discuss with help of a production possibility curve, how resource allocation decisions are made and how allocation decisions incur an opportunity cost.arrow_forwardThe production possibility frontier for X and Y consists of all the efficient allocations in the Edgeworth box. Explain why this is so. Also explain why inefficient points in the box would be inside the production possibility frontier.arrow_forward1. 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”?arrow_forward
- 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.arrow_forwardWhy do problems related to allocation of resources in an economy arise?. Explain.arrow_forwarda pareto efficient allocation should always be on the contract curve . Discuss this sentencearrow_forward
- Show and explain how the distribution/allocation constraints are satisfied by any point in an Edgeworth-box diagram.arrow_forwardExamine the use of different allocation methods. Describe three different methods of allocating scarce resources. Explain how these allocation methods may affect quantity demanded, equilibrium price, and quantity supplied. Are these allocation methods more or less efficient than other methods? Explain your arguments using relevant course material and personal experience.arrow_forwardDiscuss whether the imposition of maximum prices can improve the allocation of scarce resources. Give reasons why and why not.arrow_forward
- When an allocation is changed and someone becomes better-off, then we can call this a Pareto-Improvement, so long as ____. A. All other parties become better-off B. All other parties become worse-off C. Someone else is made worse-off D. No one is worse-offarrow_forwardAssume a case where Angela works the land owned by Bruno. By referring to the diagram above, explain how does Angela rank the possible allocations marked as X, Y, Z and A? [Slope at Y is equal to Slope at A]arrow_forwardDescribe the different methods of allocation scarce resourcesarrow_forward
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