Chapter 2: Q3 (page 43)
Could a nation be producing in a way that is allocatively efficient, but productively inefficient?
Short Answer
No, a nation can't produce in a way that is allocatively efficient but productively inefficient.
Chapter 2: Q3 (page 43)
Could a nation be producing in a way that is allocatively efficient, but productively inefficient?
No, a nation can't produce in a way that is allocatively efficient but productively inefficient.
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Marie has a weekly budget of \(24, which she likes to spend on magazines and pies. If price of magazine is \)4 each & price of pie is 12 each :
Draw Marieโs budget constraint with pies on the horizontal axis and magazines on the vertical axis. What is the slope of the budget constraint?
Explain why scarcity leads to tradeoffs.
Would an op-ed piece in a newspaper urging the adoption of a particular economic policy be a positive or normative statement?
Do economists have any particular expertise at making normative arguments? In other words, they have expertise at making positive statements (i.e., what will happen) about some economic policy, for example, but
do they have special expertise to judge whether or not
the policy should be undertaken?
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