The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods, cars and food.Figure 2.4
-Given that resources can be allocated by the government, the market, a random process, or on a first-come first-serve basis, which of the following statements is true?
A) The market system is not entirely fair but it creates incentives to increase supplies and improve standards of living.
B) The random process of allocation allows individuals to acquire purchasing power and enhances the value of the resources that they own.
C) Since the government system does not distinguish between those who have income and those that do not, government allocation of resources is the most efficient.
D) There will be no shortages under the first-come first-serve basis of allocation.
E) A random process of allocation is fair in the sense that everyone gains and there are no losers.
Correct Answer:
Verified
Q14: The figure given below represents the PPC
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Q21: The table given below reports the quantity
Q22: The table given below reports the quantity
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Q24: The table given below reports the quantity
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