Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
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Textbook Question
Chapter 2, Problem 21CTQ
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?
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It is clear that productive inefficiency is a waste since resources are being used in a way that produces fewer goods and services than a nation is capable of. Why is allocative inefficiency also wasteful?
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?
Explain why using opportunity cost as a measure of the “cost” of something is better than using a money value to an economist.
Chapter 2 Solutions
Principles of Economics 2e
Ch. 2 - Suppose Alphonsos town raised the price of bus...Ch. 2 - Return to the example in Figure 2.4. Suppose there...Ch. 2 - Could a nation be producing in a way that is...Ch. 2 - What are the similarities between a consumers...Ch. 2 - Individuals may not act in the rational,...Ch. 2 - Would an op-ed piece in a newspaper urging the...Ch. 2 - Would a research study on the effects of soft...Ch. 2 - Explain why scarcity leads to tradeoffs.Ch. 2 - Explain why individuals make Choices that are...Ch. 2 - What is comparative advantage?
Ch. 2 - What does a production possibilities frontier...Ch. 2 - Why is a production possibilities frontier...Ch. 2 - Explain why societies cannot make a choice above...Ch. 2 - What are diminishing marginal returns?Ch. 2 - What is productive efficiency? Allocative...Ch. 2 - What is the difference between a positive and a...Ch. 2 - Is the economic model of decision-making intended...Ch. 2 - What are four responses to the claim that people...Ch. 2 - Suppose Alphonsos town raises the price of bus...Ch. 2 - During the Second World War, Germanys factories...Ch. 2 - It is clear that productive inefficiency is a...Ch. 2 - What assumptions about the economy must he true...Ch. 2 - Do economists have any particular expertise at...Ch. 2 - If the price of a magazine is 4 each, what is the...Ch. 2 - If the price of a pie is 12, what is the maximum...Ch. 2 - Draw Maries budget constraint with pies on the...Ch. 2 - What is Maries opportunity cost of purchasing a...
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- Colin gives away 2 marbles each time he makes a pokemon card construct a graph that represents constant opportunity costarrow_forwardIf an economy is producing the mix of goods and services that society wants, this is an example of Question options: Productive efficiency. Allocative efficiency. Technical efficiency. Mechanical efficiency.arrow_forward"What is the basic economic problem of scarcity?"arrow_forward
- What are the basics of a "circular economy'? In your answer briefly discuss such concepts as: material flow analysis; ecodesign; industrial ecology; reverse logistics; extended producer responsibility; and functional economy.arrow_forwardThe rule of equating marginal benefit with marginal cost is proper for economics. Is this true?arrow_forwardWhich of the points are feasible and which are efficient?arrow_forward
- What does Joseph Schumpeter mean by “Creative Destruction”? Please give examples from the period of 1865 to 1930.arrow_forwardMy sister graduated high school, she decided to go to university. The opportunity cost of going to university is the wages she gave up working full time for the number of years she was in university. Could you please explain in economic terms why opportunity cost exists in this specific situation?arrow_forwardMicroeconomic theory studies how a free-enterprise economy determines (a) the price of goods, (b) the price of services, (c) the price of economic resources, or (d) all of the above.arrow_forward
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