Asked by Charlie gilmore on Jun 17, 2024
Verified
What is TRUE about every point along a utilities possibilities frontier?
A) Markets are perfectly competitive.
B) It is possible to move to from one point on the frontier to another point and make everyone better off.
C) All allocations are efficient.
D) It includes some unattainable points.
Utilities Possibilities Frontier
Represents the maximum utility levels that two individuals or more can achieve within a given set of resources, emphasizing trade-offs and efficiency.
Efficient
An economic state where every resource is optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.
- Understand the fundamentals of welfare economics, encompassing the utility possibilities frontier and its demonstration of resource allocation efficiency.
Verified Answer
SC
Shaniyah ChambersJun 20, 2024
Final Answer :
C
Explanation :
The utilities possibilities frontier represents all of the efficient allocations, meaning that it is not possible to move to another point and make everyone better off. However, it may include some unattainable points as resources are limited, but all points along the frontier are efficient. Market competitiveness is not necessarily a factor in determining the points on the frontier.
Learning Objectives
- Understand the fundamentals of welfare economics, encompassing the utility possibilities frontier and its demonstration of resource allocation efficiency.