Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Question
Chapter 6, Problem 7MCQ
To determine
To find:
The option which correctly shows the allocation of resources.
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What does the Pareto efficiency criterion state? A. An allocation of resources is efficient if it maximizes government revenue B. An allocation of resources is efficient if it maximizes producer surplus C. An allocation of resources is efficient if it is impossible to make someone better off without making someone else worse off D. An allocation of resources is efficient if it allocates resources equally among all individuals
When the net benefits of all economic activities are not maximized, economists say the allocation of resources is _______ .
Group of answer choices
A. poorly done
B. efficient
C. inefficient
D. incorrect
Explain the focus of economics on the
"allocation, distribution, and use of resources".
Chapter 6 Solutions
Foundations of Economics (8th Edition)
Ch. 6 - Prob. 1SPPACh. 6 - Prob. 2SPPACh. 6 - Prob. 3SPPACh. 6 - Prob. 4SPPACh. 6 - Prob. 5SPPACh. 6 - Prob. 6SPPACh. 6 - Prob. 7SPPACh. 6 - Prob. 8SPPACh. 6 - Prob. 9SPPACh. 6 - Prob. 10SPPA
Ch. 6 - Prob. 11SPPACh. 6 - Prob. 12SPPACh. 6 - Prob. 1IAPACh. 6 - Prob. 2IAPACh. 6 - Prob. 3IAPACh. 6 - Prob. 4IAPACh. 6 - Prob. 5IAPACh. 6 - Prob. 6IAPACh. 6 - Prob. 7IAPACh. 6 - Prob. 8IAPACh. 6 - Prob. 9IAPACh. 6 - Prob. 1MCQCh. 6 - Prob. 2MCQCh. 6 - Prob. 3MCQCh. 6 - Prob. 4MCQCh. 6 - Prob. 5MCQCh. 6 - Prob. 6MCQCh. 6 - Prob. 7MCQ
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- 10. In terms of Adam Smith’s concept of the invisible hand, an efficient overall allocation of resources is likely to result from?arrow_forwardCan 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.arrow_forward1. A basis for the systematic study of economics exists because A Resources are scarce in relation to material wants. B Governments interfere because there is always an efficient allocation of scarce resources. C Individual economic actors never make rational economic decisions. D Resources are plentiful relative to wants, therefore an allocation problem arises. E The market consistently fails to allocate resources efficiently, thereby establishing the need to study economics. 2. The law of increasing opportunity cost is reflected in the shape of the A Production possibilities curve concave to the origin. B Production possibilities curve convex to the origin. C Horizontal production possibilities curve. D Straight-line production possibilities curve. E Upward-sloping production possibilities curve. 3. A production possibility frontier shows A The maximum combination of inputs that can be used to produce output in a typical economy. B The maximum revenue that can be generated from the…arrow_forward
- Why do problems related to allocation of resources in an economy arise?. Explain.arrow_forwardHelp mearrow_forwardAny point within a production possibility frontier indicate _________________ combinations in the production of the two goods or services and _______________ in terms of the use of resources. a.Unattainable; efficiency b.Attainable; inefficiency c.Attainable; efficiency d.Unattainable; inefficiencyarrow_forward
- The production possibilities frontier is the Select one: A. maximum output that can be produced at an opportunity cost of zero. B. minimum output that can be produced when resources are used inefficiently. C. boundary between the combinations of goods and services that can be produced and the combinations that cannot be produced when technology is changing. D. boundary between the combinations of goods and services that can be produced and the combinations that cannot be produced, given the available factors of production and the state of technology. E. maximum opportunity cost combinations of goods and services.arrow_forwardThe production possibilities frontier curve illustrates that a. an economy's capacity to produce is unrelated to its population. b. if all the resources of an economy are being used efficiently, more of one good can be produced only if more of another good is produced. c. an economy will automatically move toward a point at which all of its resources are being used inefficiently. d. if all the resources of an economy are being used efficiently, more of one good can be produced only if less of another good is produced.arrow_forwardEconomics is a social science which deals with human behavior as a relationship between ________. a. unlimited buyers and limited sellers b. consumption and production c. unlimited wants and scarce resources d. unending wants and limited peoplearrow_forward
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