In Islandia, all goods and inputs are bought and sold at chere is a single price for each product. Islandia has a large number of citizens who ar all utility-maximizers and all goods are produced and sold by profit-maximizing firm none of which is large enough to influence the prices at the market. Do you kno- whether the mix of goods being produced and consumed in Islandia is efficient? If s explain whether or not it is and how the information you know guarantees that th mix is efficient. If not, identify what additional information would you need to knc to tell whether the mix is efficient and explain why this information is needed.
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- To determine how much of a good to produce to achieve allocative efficiency, we O A. construct a production possibilities frontier and choose the midpoint. O B. must produce on the PPF and at the point where the marginal benefit exceeds by as much as possible the marginal cost of the good. OC. construct a production possibilities frontier and choose any point on it. O D. must produce on the PPF and at the point where the marginal benefit exceeds by any amount the marginal cost of the good. O E. must produce on the PPF and at the point where the marginal benefit and marginal cost of the good are equal.What are the similarities between a consumers budget constraint and societys production possibilities frontier, not just graphically but analytically?Would you rather have efficiency or variety? That is, one opportunity cost of the variety of products we have is that each product costs more per unit than if there were only one kind of product of a given type, like shoes. Perhaps a better question is, “What is the right amount of variety? Can there be too many varieties of shoes, for example?” the bold question i dont understadnwhat they are trying to ask me to do
- The marginal benefit of an additional beach towel is $8. The marginal cost of producing an additional beach towel is $12. If producers are not minimizing the average costs of production, then we can conclude beach towel production is neither allocatively nor productively efficient. beach towel production is allocatively efficient but not productively efficient O beach towel production is both allocatively and productively efficient. O beach towel production is not allocatively efficient but is productively efficient.In the economy of Libro, when 7 million yoga mats are produced each year, the citizens of Libro are willing to give up 3 protein shakes to get one yoga mat Draw a marginal benefit curve for the economy of Libro that is consistent with this information. Label it Wilingness to pay (protein shakes per yoga mat) 10 Draw an arrow along the marginal benefit curve to illustrate the change in marginal benefit and change in the quantity of yoga mats as the quantity of yoga mats produced increases 10 Yoga mats (milons per year) the objects specified in the questionThe graph shows the market for paper. The government passes a new law that limits the quantity of paper that producers sell to 40 tons of paper a day. C because This market for paper is O A. efficient; production is greater than zero O B. inefficient; the marginal cost of the 40th ton of paper is greater than the marginal benefit from the 40th ton of paper inefficient; more paper could be produced O C. O D. inefficient; the marginal benefit from the 40th ton of paper is greater than the marginal cost of the 40th ton of paper O E. efficient; the marginal cost of the 40th ton of paper equals the marginal benefit from the 40th ton of paper Draw the deadweight loss when production is 40 tons of paper a day. Label it. 20.00 18.00- 16.00- 14.00- 12.00- 10.00- 8.00- 6.00+ 4.00- 2.00- Price (dollars per ton) 6.00 0.00+ 0 S ID 40 60 80 100 120 Quantity (tons per day) >>> Draw only the objects specified in the question. 20 OU 140
- Question 3 Person 1 can allocate her 8-hour day between the production of two goods A and B. Each hour devoted to Good B yields 2 units whereas each hour devoted to Good A produces 4 units. a) State whether 9units of Good B and 12 units of Good A are attainable, unattainable, efficient or inefficient. (State all that applies) b) Person 2, can produce3 units of Good B or 4 units of Good A per hour who has the absolute advantage in the production of Good B? c) who has the absolute advantage in the production of Good A? d) Calculate the opportunity cost for Good B for Person 2 e) Calculate the opportunity cost for Good A for person 1 f) who has the comparative advantage in the production of Good B? g) who has the comparative advantage in the production of Good A?Help me6. The interaction of individual choices Immediately after an ice storm brought down power lines throughout the region, hardware stores were sold out of batteries and flashlights. However, within a couple of days, special deliveries brought in extra batteries and flashlights, and everyone who wanted to buy a flashlight or batteries was able to do so. Which of the following principles of economic interaction best describes this scenario? O Markets allocate goods effectively. O All costs are opportunity costs. O When markets do not achieve efficiency, government intervention can improve overall welfare. There are gains from trade.
- person 1 can allocate her 8 hour day between the production of two goods: A and B. Each hour devoted to good B yeilds 2units . whereas each hour devoted to good A produces 4 units. state whether 9 units of good B and 12 units of good A are unattainable, efficient, or inefficient.(state all that applies) select one or more attainable inefficient efficient unattainable1. Pareto Optimality: В A X2 X, M Private Goods and Services per Year 1.1 From the Production Possibility Curve (PPC) above, explain why any point on PPC, such as points A and B, is “Pareto Efficiency". Briefly explain the concept and its implication. 1.2 Bangkok is about to have a new governor as the election for the governorship of Bangkok will be held on 22 May 2022. The city of Bangkok is locally governed by the Bangkok Metropolitan Administration (BMA), which is also considered a local government of Thailand. People always have different opinions about the proper level of public expenditure. state your own perspective regarding current scale of public sector in Bangkok. Should Bangkok increase or decrease the current budget? Why? Use the PPC below to incorporate in your explanation and reasoning, in order to describe the direction of reallocation you preferred. Provide example projects/measures/policy you would like to see its budget rise (or cut). Government Goods and Services…Mitchell and Scott can produce either apples or oranges. The table lists the maximum number of each that they can produce per day. Apples Oranges Mitchell 6 30 Scott 12 24 Which of the following combinations of goods is it possible for Mitchell and Scott to consume if they can trade apples and oranges on the world market at a price of $6/kg for apples and $1/kg for oranges? 15kg of apples and 18kg of oranges 15kg of apples and 20kg of oranges 10kg of apples and 50kg of oranges Okg of apples and 108kg of oranges