Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Question
Chapter 2, Problem 6SPA
To determine
Identify the difference between the production efficiency and
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Question 8
Distinguish between production efficiency and allocative efficiency. Explain why many
production possibilities achieve production efficiency but only one achieves allocative
efficiency.
The figure shows the production possibilities frontier for Mario's, a pizza and pasta producer.
Draw a point at which the firm achieves production efficiency. Label it Efficient.
Draw a point that is attainable but inefficient. Label it Inefficient.
...
What does it mean to say that production is inefficient?
When production is inefficient,
OA. all resources are assigned to tasks for which theyare the best match
OB. there is a tradeoff betweenpizza and pasta
OC. the firm can produce more pastaonly by producing lesspizza
D. the firm can produce more pastawithout producinglesspizza
100-
90-
80-
70-
60-
50-
40-
30-
Pasta dishes (per hour)
20-
10-
0-
2
0
PPF
10
12
5
4
6
8
Pizzas (per hour)
>>> Draw only the objects specified in the question.
What is Production Efficiency and Inefficiency in economics? Explain with the help of adiagram.
Chapter 2 Solutions
Macroeconomics
Ch. 2.1 - Prob. 1RQCh. 2.1 - Prob. 2RQCh. 2.1 - Prob. 3RQCh. 2.1 - Prob. 4RQCh. 2.1 - Prob. 5RQCh. 2.1 - Prob. 6RQCh. 2.2 - Prob. 1RQCh. 2.2 - Prob. 2RQCh. 2.2 - Prob. 3RQCh. 2.2 - Prob. 4RQ
Ch. 2.2 - Prob. 5RQCh. 2.3 - Prob. 1RQCh. 2.3 - Prob. 2RQCh. 2.3 - Prob. 3RQCh. 2.3 - Prob. 4RQCh. 2.3 - Prob. 5RQCh. 2.3 - Prob. 6RQCh. 2.3 - Prob. 7RQCh. 2.4 - Prob. 1RQCh. 2.4 - Prob. 2RQCh. 2.4 - Prob. 3RQCh. 2.4 - Prob. 4RQCh. 2.4 - Prob. 5RQCh. 2.4 - Prob. 6RQCh. 2.4 - Prob. 7RQCh. 2.5 - Prob. 1RQCh. 2.5 - Prob. 2RQCh. 2.5 - Prob. 3RQCh. 2 - Prob. 1SPACh. 2 - Prob. 2SPACh. 2 - Prob. 3SPACh. 2 - Prob. 4SPACh. 2 - Prob. 5SPACh. 2 - Prob. 6SPACh. 2 - Prob. 7SPACh. 2 - Prob. 8SPACh. 2 - Prob. 9SPACh. 2 - Prob. 10SPACh. 2 - Prob. 11APACh. 2 - Prob. 12APACh. 2 - Prob. 13APACh. 2 - Prob. 14APACh. 2 - Prob. 15APACh. 2 - Prob. 16APACh. 2 - Prob. 17APACh. 2 - Prob. 18APACh. 2 - Prob. 19APACh. 2 - Prob. 20APACh. 2 - Prob. 21APACh. 2 - Prob. 22APACh. 2 - Prob. 23APACh. 2 - Prob. 24APACh. 2 - Prob. 25APA
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- Define productivity efficiency and allocative efficiency. What conditions must be met in order to achieve them?arrow_forwardHow many units of labor and capital should be purchased to maximize production? What is the maximum number of units of production?arrow_forwardConsider a simple economy which produces two goods; pizzas and tractors. Using the production possibilities boundary and graphs for the pizza and tractor market show and explain how the precise allocatively and productively efficient point on the production possibilities boundary can be determined. Please draw a graph to show, not just write step by step.arrow_forward
- Explain what is meant by allocative efficiency and under what conditions is this efficiency achieved? And explain what is meant by efficiency in production, and under what conditions is this efficiency achieved?arrow_forwardCorn 120.000 D 80.000 40.000 Robots 5.000 10.000 15.000 In the graph above, if the economy is at point C, it follows thatarrow_forwardSupermarché Jean Claude has decided to manufacture its own brand of non-alcoholic beverages, called NAB, and chocolate bars, called S-JC. A certain amount of money has been allocated to the production of these two products. Jean Claude believes in the old saying that a picture is worth a thousand words, and once again, he has called on you. This time, he wants to see diagrams that illustrate the effects of each of the following events on the production possibilities for NABS and S-JCs so he can visualize the situation. (a) A new and more efficient method of producing non-alcoholic beverages is discovered. (b) The demand for both non-alcoholic beverages and chocolate bars increases. (c) More workers are hired to produce S-JCs. (d) Resources are transferred from S-JC production to NAB production. (e) All workers are trained so that the quality of their labour services improves. Instructions Produce the series of graphs with accompanying texts (150-175 words) so that Uncle Jean Claude…arrow_forward
- Define the four ecconomic resources (the factor of production).How are they Relevant to the production possibilities curve?arrow_forwardIn a production possibilities curve, is a change from inefficiency to economic efficiency obtained by ...?arrow_forwardSuppose Ireland produces only two goods: barley and tablets. The following graph shows Ireland's current production possibilities frontier, along with six output combinations represented by black points (plus symbols) labeled A to F. Complete the following table by indicating whether each point represents output combinations that are inefficient, efficient, or unattainable. Check all that apply. Point Inefficient Efficient Unattainable A B C D E Farrow_forward
- assume that you happen to see a ripe mango fallen from a tree lying along a public roadside. if you pick it up and consume, you can enjoy some satisfaction. how many factors of production are involved in this process of satisfying your want? explain you answer.arrow_forwardWhy is it inefficient for an economy to be inside the production possibilities frontier?arrow_forwardColin gives away 2 marbles each time he makes a pokemon card construct a graph that represents constant opportunity costarrow_forward
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