Multiple Choice
In the context of the production possibilities frontier (PPF), what does increasing marginal opportunity costs mean?
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2. Introductory Economic Models
PPF - Increasing Marginal Opportunity Costs and Allocative Efficiency
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Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
What is Chuggy's economics grade when he achieves allocative efficiency?
A
60 percent
B
70 percent
C
76 percent
D
82 percent
E
85 percent
Verified step by step guidance1
Understand the concept of allocative efficiency: Allocative efficiency occurs when resources are distributed in a way that maximizes the net benefit to society. In the context of a student's grade, it would mean achieving a grade that reflects the optimal use of their study time and effort.
Identify the options provided: The problem gives several percentage grades as options. These represent potential grades Chuggy could achieve.
Consider the context of the problem: Allocative efficiency in this scenario might imply the grade that best reflects Chuggy's optimal performance given his resources (time, effort, etc.).
Evaluate each option: Think about which grade would represent a balance between effort and outcome, where Chuggy's resources are used most effectively.
Conclude with the understanding that the correct answer, 76 percent, is the grade that represents allocative efficiency, meaning it is the most efficient use of Chuggy's resources to achieve this grade.
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