An economy will be operating on a point inside of its production possibilities frontier if there is inefficiency in resource allocations.what is meant by inefficiency ?you may find it helpful to use an example in your answer.

Q: An outward shift of a production possibilities curve can be caused by a. planting a more profitable…

A: Answer: PPF shifts outward when the overall production capacity of the economy increases. Production…

Q: If you claim that an increase in the tax on groceries will result in an increase the price of…

A: The economics as a study is divided into various branches depending upon the entities which are…

Q: Assume that Natalie and Grace have a garden behind their house and can each pick mushrooms and…

A: Hi, Since you have asked multiple sub-parts, I could provide answer only for first three sub-parts.…

Q: Identify the scarcity definition of economics from the following. a. the distribution of surplus…

A: Economics focuses on how the economies work, basically, the consumption, production and distribution…

Q: Assume now that the sacrifice ratio is greater than 1, show what will happen to the shape of the…

A: (1) Suppose that Two goods - Shoes and computer Diminishing marginal return The opportunity cost of…

Q: A production possibilities curve shows the variouscombinations of two outputs thata. consumers would…

A: Resources are anything that are employed or utilized by business companies in the production of…

Q: Consider a production possibilities curve. The origin and two points A and B may be connected by one…

A: Scarcity is an economic concept that relates to the reality that there is a finite number of human…

Q: What is a production possibilities frontier?  How can we show efficiency on a productions…

A: PPF is the representation of the total output capacity of an economy given all the resources which…

Q: Suppose the economy initially produces 9,000 pieces of clothing and 500 million barrels of oil,…

A: A production possibility frontier (PPF) shows the maximum possible output combinations of two goods…

Q: If we assume that a cafe owner wants to increase the number of people she can serve lunch to and is…

A: Answer: Introduction part: To some extent, all economic resources are  interchangeable.The cafe…

Q: If the production possibilities frontier can be expressed as 4X2+y2=16, then the point X=√3; Y+2 is…

A: Given,   PPF: 4X2+ Y2 = 16  X = √3, Y = 2

Q: . In terms of Adam Smith’s concept of the invisible hand, an efficient overall allocation of…

A: Concept The invisible hand is the idea that free markets will find a balance in market forces for…

Q: What does the slope of a curve between two points have to do with the opportunity cost of producing…

A: Opportunity cost of producing additional units of one good is the quantity given up of the other…

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: Which of the following is a TRUE statement? Explain why.  1. If for a PPF, there is allocative…

A: PPF is Production Possibility Frontier shows the possible combination of two commodities that can be…

Q: According to Polonyi,need for economy arises a)because scarcity of resources needs efficient…

A: According to Polonyi, formal economics is related to the scarcity of goods, and that too when the…

Q: The below table shows production points on Sweet-Tooth Land's production possibilities frontier.…

A: A production possibility curve, or PPC for short, is a graphical representation of the various…

Q: What is a ‘final good’? Select one: a. A good not used as an input in the production process b. A…

A: A final good is a commodity which is used or used by the end user. The successful (product) needs no…

Q: The Se ond welrare neore n states that: a) A Walrasian equilibrium will be Pareto-inefficient,…

A: Welfare  economics is concerned with maximizing the utility for society as a whole. A pareto…

Q: Please help me solve this problem. Thank you!

A: Production possibility frontier curve is a curve that shows the various combinations of two goods…

Q: What is the difference between microeconomics and macroeconomics? What is comparative advantage?…

A: Economics is a study related to the production, distribution and finally the consumption of…

Q: Which of the following statements is false? A) Anytime you have to decide which action to take you…

A: To obtain a certain good or service, we have to sacrifice something, it can be money or time or…

Q: Economics is a branch of social science that deals with the efficient allocation of scarced…

A: Economics is the study of individuals and all the economic agents about how they allocate the scarce…

Q: Draw and explain a production possibilities frontier for an economy that produces cheese and milk.…

A: The production possibility frontier for cheese and milk production. If a disease kills half of the…

Q: The ________ production points on a production possibilities frontier are the points on and inside…

A: Production possibility frontier (PPF) refers to the curve that shows the combination of goods which…

Q: PPFs are usually bowed out because:    a) all resources are not equally adaptable in the production…

A: Production possibility frontier refers to a curve that shows the combinations of two goods located…

Q: In the basic supply-and-demand model, a buyer only purchases a good when?    if the price is lower…

A: The demand and supply model shows the relationship between the selling quantity of products and…

Q: Given that most people like to get ‘free stuff,’ it follows that goods that are available free of…

A: The following problem has been solved as follows:

Q: In Hayek's The Use of Knowledge in Society, he asserts that the fundamental problem of society is:…

A: As a distinct key resource, knowledge represents a variety of economic and social development.…

Q: Refer to Exhibit 3-8. At Point B in the production possibilities graph shown, the economy: a. is not…

A: A production possibility curve is a curve that shows the possible quantities that can be produced of…

Q: Explain the difference between productive and allocation efficiency. How do you think a centrally…

A: Productive efficiency is the optimal way to produce goods and services at the lowest possible cost,…

Q: If a new type of seed were developed that made it easier to grow a particular crop, how would the…

A: Production possibility curve is a graphical presentation of all the possible combination of two…

Q: A certain production possibilities frontier shows production possibilities for two goods: pants and…

A: Production Possibility Frontier is a curve which is the locus of different combinations of two goods…

Q: an economy is producing the mix of goods and services that society wants, this is an example of…

A: The allocative efficiency is a reflection of the peoples satisfaction gaining from the fulfilment of…

Q: Suppose a nation has a total of 12 units of labor, which can be used to produce either guns or…

A: The problem of resource allocation is one of the central problem of economics. as resources are…

Q: What is the axiom of consumer choice that implies that consumers spend all their income in order to…

A: Consumers make decisions by allocating their limited and given income for consuming all possible…

Q: A point outside the production possibilities curve is  attainable, but there is not full employment…

A: PPC (Production Possibility Curve) refers to the different combinations of two commodities that can…

Q: For each of the following, indicate how you might apply the four core principles of economics (the…

A: Here, given statements are related to principles of economics according to their influence on market…

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: Suppose the United States produces only two goods: alfalfa and computers. The following graph shows…

A: Production possibility curve can be explained as the curve which shows different possibilities of…

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: The table above shows the production possibilities frontier for a company producing only 2 goods:…

A: With company producing two goods at a combination of 4 bats and 10 rackets. The firm is under…

Q: The production possibilities curve illustrates the basic principle that:   Question 70 options:…

A: if all the resources of an economy are fully used, more of one item could be produced only if less…

Q: Why is the production possibility frontier concave? Be sure to explain economic intuition behind…

A: # Lets first consider the concept of the production possibility frontier. PPF is a locus of bundles…

Welfare Analysis

Welfare analysis of the society is related to welfare economics. From the economic point of view former welfare economics refers to that subject which uses the techniques of microeconomics to analyse and evaluate the welfare at the economic or aggregate level.