Question

(This question refers to the MRU video 'Exploring Equilibrium') The market equilibrium separates the demand curve into two parts: and Select one: a. the buyers; the sellers b. the buyers; the non-buyers c. the buyers with consumer surplus; the buyers without consumer surplus d. the wasteful buyers; the non-wasteful buyers Question 45 Not yet answered Points out of 1 Flag question It is difficult for a central planner to determine optimal allocations of resources because: Select one: a. of too many incentives governing the central planner. b. of a potential lack of incentives among citizens who are asked to provide the central planner with accurate information. c. the incentives exist to manipulate the improve the allocations of resources to resources d. of the simplicity of a modern economy.

Answer 1

b. The market equilibrium seperates the demand curve into two parts,the buyers and the non-buyers. The people who buy at the Equilibrium price(The left part of a downward sloping demand curve) are the buyers and the ones that don't(on the right side of the equilibrium) are the non-buyers

b. a potential lack of incentives among citizens who are asked to provide the central planner with accurate information. One of the main criticisms of a centrally planned economy is that the planners will find it difficult to adjust to circumstances quickly. Many people believe that it is inefficient and the planners do not have the capacity to collect and analyze the data. The process of collecting the data is also highly inefficient and so they would be unable to adjust to local conditions quickly enough