Suppose that Year 1 is the base year. Year 2 real GDP is

Imagine an economy where the government allocates resources among its citizens. Recently, the government divided $1,000 among ten citizens. The amount each citizen received is displayed in the table below

Citizen Amount Received ($) 1 100 2 150 3 50 4 10 5 90 6 200 7 10 8 190 9 20 10 180 a) The government claims that this is an efficient allocation. Do you agree? b) Social workers in the economy criticized the government on the basis of this allocation. What could be the grounds for such criticism?

Perfect competition displays the market mechanism at its best in many respects, yet most markets in operation today are monopolistic or oligopolistic, composed of a few large firms. Should government regulation break up those large firms into several smaller firms to try to achieve perfect competition? Why or why not?

What will be an ideal response?