--%>
Assignment Help - homework help

Changes in relative prices make Allocative Efficiency

Changes in relative prices make easy allocative efficiency through operating like a rationing mechanism while: (i) Ken and Barbie postpone their wedding since they both lost their jobs throughout a recession. (ii) Political instability within the Middle East raises gasoline prices, causing new car buyers to buy fuel-efficient hybrids in place of gas-guzzlers. (iii) Poor people can’t afford plastic surgery. (iv) The price of a corporate stock falls after auditors discover which corporate executives have been falsifying accounting records of the firm. (v) Technological advances decrees prices for computer chips and stimulate enlargement of new consumer electronic products.

Can anybody recommend me the proper explanation for specified problem regarding Allocative Efficiency.

   Related Questions in Public Economics

  • Q : Requirements of Economic Efficiency

    Economic efficiency needs: (w) distributive, productive and allocative efficiency. (x) engineering and dynamic efficiency. (y) historical and sociological efficiency. (z) chemical and physical efficiency. How can I

    		•
  • Q : Condition to being a free good Which of

    Which of the given probably comes closest to make a free good: (1) Unexpected warmth through the sun within Chicago in January. (2) A hot school lunch given for a needy student. (3) A microwave pizza bought along with food stamps. (4) Income earned th

    		•
  • Q : Divisions of labor in production

    Economic efficiency tends to be improved via: (1) Divisions of labor in specialization and production and trade according to comparative advantage. (2) Maximization of the opportunity costs. (3) Understanding macro-economics. (4) Intensive investments

    		•
  • Q : Why are Land Land, labor, and capital

    Land, labor, and capital are all scarce since: (w) human wants are restricted. (x) less is obtainable than people want. (y) each productive resource needs a monetary return for its use. (z) once employed they cannot be used again.

    Q : Positive declaration in positive

    When a mother tells her young child that thunder is caused by the angels bowling up in heaven, scientists would classify her statement as most clearly: (w) a normative statement. (x) a positive statement. (y) microeconomics in place of macroeconomics. (z) scientifical

    		•
  • Q : Break-even price what is the break-even

    what is the break-even price in economics?

    		•
  • Q : Potentially allocated lower prices in

    Whose lives are potentially allocated lower prices while a drunk decides to drive home without waiting to sober up?

    		•
  • Q : Requirement of technically efficient

    I need a good answer on the topic of Economic problems. Please give me your suggestion that for production to be technically efficient needs that the: (i) Maximum benefits are acquired at the highest possible cost. (ii) Opportunity costs of production

    		•
  • Q : Socialism-ownership of non-human

    Can someone please help me in finding out the right answer from the following question. A faith that most of the nonhuman resources must be owned, not by the private individuals, however instead ‘by everyone’ in common, with the govt. as t

    		•
  • Q : Limitations of economic resources Hey

    Hey friends please give your opinion for the problem of economic resources that is given below: Resources (factors of production) do NOT comprise: (i) entrepreneurship. (ii) competition. (iii) land. (iv) capital. (

    		•