The diagram above shows the general equilibrium model for X and Y for a small hypothetical economy.Point A in this diagram represents positions where:
A) There is an excess supply of good X
B) There is an excess demand for good X
C) The economy is at an economically efficient allocation of resources
D) Maximizing utility
Correct Answer:
Verified
Q31: Compared to PPF1, along PPF2
A)the economy can
Q32: Three main conditions are necessary for general
Q32: Compare Pareto optimality with the utilitarian view
Q33: According to the General Equilibrium Model an
Q33: Sketch a typical consumption contract curve in
Q34: The diagram above shows the production possibilities
Q36: If after the misallocation in Problem 35
Q37: Given an initial endowment of factor inputs
A)There
Q38: The slope of the contract curve for
Q39: When the two-good production and trade models
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