An allocation is a specification of the ___________ of each good to be ___________ by each agent in the economy.
A) price, consumed
B) quantity, produced
C) quantity, consumed

Question

Quizplus · Accepted Answer

An allocation determines the quantity of each good to be consumed by each agent in the economy. The price of the good is not specified as part of the allocation, so option A is incorrect. Similarly, the quantity produced is not relevant to the allocation, so option B is also incorrect.

An Allocation Is a Specification of the ___________ of Each