Explain why a government may select an inefficient allocation
What will be an ideal response?
A government may decide the equity of an allocation makes it preferable to all possible efficient allocations.
You might also like to view...
What contributed to the United States recession of 2007-2009?
a. High Federal budget deficit b. Deflation in commodity prices and reduction in consumer saving c. Bank failure, panic among investors, and lack of confidence in paper currency d. Stock market collapse, drop in real estate values, and a drop in consumer spending
The answer is: "It allows the inhabitants of a country to consume at a level beyond its production possibilities frontier." What is the question?
A) What do newly discovered resources do? B) What does technology do? C) What does specialization and international trade do? D) What does specialization do? E) a and b