7. When markets fail to allocate resources efficiently, the ultimate source of the problem is usually a. that prices are not high enough so people overconsume. b. that property rights have not been well established. ‒‒‒‒‒‒‒
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- 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?what are 2 assumptions that underline the conclusion that free market are efficient?Can you help me with below homework question. Which of the following economic criteria is concerned with the overall fairness of the distribution and use of scarce resources? a) Marginal utility of consumption.b) Production efficiency.c) Equity.d) Allocation efficiency.
- Budget Constraints: Sam has an income of $1000 a week from a rental property he owns. Sam also has a job as a legal assistant where he gets paid $50 an hour for the first 50 hours he works. However, he can’t work for more than 50 hours, so for every hour, he works more than 50 he can work as a cashier making 20 an hour. John’s time endowment is 100 hours. a) Draw and label Sam's budget constraint b) What is John’s maximum potential income? c) What is the price/hour of leisure when Sam works fewer than 50 hours, and more than 50 hours/week? Need help for a b c . Thanks4. Derive the Slutsky Equation and demonstrate its Slutsky symmetry. Interpret the symmetry.5. The City Government has been using the police force to evict hawkers from the CentralBusiness District (CBD). Construct a discrete choice economic model that the Governmentcan use to incentivize hawkers to shift voluntarily to a location outside of the CBD.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.
- #5. To achieve the social optimum, the government could set a tax equal to ________ per unit sold. a. $6 b. $4 c. $2 d. $3 e. $5Explain why “tragedies” occur when the goods involved are common goods/resources. Explain how the Coase theorem may or may not resolve this problem1) Scarcity implies that A) people should limit their wants. B) firms must become more efficient when producing goods. C) people must make choices. D) non-renewable resources should never be used. 2) Scarcity exists because human wants ________ 3) The most basic concept in economics is A) wealth. B) income. C) scarcity. D) spending. 4) Scarcity means A) not being able to satisfy all of everyone's needs. B) not being able to satisfy all of everyone's wants. C) having too little of a product to serve all customers who wish to buy it. D) the same thing as shortage. 5) Which of the following statements about scarcity is TRUE? A) Scarcity is no longer a problem for industrialized countries. B) Scarcity is a problem only in countries that do not use markets to organize economic activity. C) Scarcity exists in all societies. D) Scarcity is a problem only in countries that use markets to organize economic activity. 6)…
- a) Describe the First Welfare Theorem. b) What are the tenets? Please list out with some detail. c) Describe the tenet that is subjective and how our analysis does not do a good job at overcoming this facet. d) Pick one of the tenets and provide an example of when it is violated in the real world and describe how the market outcome and optimal outcome are not aligned.What is the term for the economic doctrine that holds that an economy works best with the minimum amount of government intervention? O Laissez-faire. Productive efficiency. Producers' preferences. Perfect competitio.