Question

No email submissions please, no under my door submissions please, no submissions to the h't have to guess at the answer) Economics office please, eto. Late assignments are subject to penalty provisions as per the course syllabus e or False Questions: ase answer true or false. Each question is worth 4 marks. 1. The supply curve for tomatoes is less elastic in the short run than in the long run 2. Cos 3. All production points on the production possibilities frontier are allocative efficient 4. Scarcity of resources results from inefficiency 5. Because it increases GDP, increased health care spending is a sign of a robust economy 6. Efficiency is a value-laden concept 7. A cost-effective allocation of productive resources must also be technologically efficient 8. When there is a negative consumption externality for a good, the price that leads to an efficient t-effectiveness analysis is poorly suited for programs with multiple types of health outcomes level of consumption is higher than the price that would result from an unregulated private market The introduction of Advil likely caused the demand curve for Aspirin to shift inward and becom more elastic There is no opportunity cost for applications of resources that are technologically efficient, co effective, and allocatively efficient 9. 10.

Answer 1

1. True. Tomato is an agricultural crop whose harvesting takes some time. Therefore there is supply lag in short run but not in long run.In short run, supply is not very responsive to price change and hence inelastic

3. False. All points on production possibility frontier are productive efficient but only one point is allocative efficient which shows the combination of goods desired by the society.

4. False. Scarcity is there due to the limited supply of natural resources in an economy and not due to inefficiency.

5. False. Increasing healthcare expenditure means people are more illness-prone in an economy and their productivity is also less. Thus they have to spend a lot on healthcare. This is not a sign of the robust economy.