With a practical example describe the relationship between the following terms as used in resource allocation-Pareto efficiency, Pareto inefficiency, Pareto improvement.

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With a practical example describe the relationship between the following terms as used in resource allocation-Pareto efficiency, Pareto inefficiency, Pareto improvement.

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Economics is best defined as the study of (A) financial decision-making. (B) how consumers make purchasing decisions. (C) choices made by people faced with scarcity. (D) inflation, unemployment, and economic growth.
There is a market of computer i.e. there is some demand and supply of computer. Shown in a diagram the effect on the demand and supply curve, the equilibrium price and the equilibrium quantity if “THE SALARIES OF ELECTRONIC TECHNICIAN GO UP”.
IBM's debt ratio for 2010 is 79.6%. This means that IBM has ______. * 79.6% cents of assets available for each R1 of its liabilities * 79.6% of non-current assets available for each R1ofnon- current liabilities * financed 79.6% of its debt with assets * financed 79.6%of its assets with debt
Determine the equilibrium price and quantity of the above market when j=100. Qd= Qs given the following equations: 400 - 2P + 4j = - 100 + 3P and 400+400+100 = 3P+2P calculate price and quantity. (5) d) Plot a graph showing the above res
Assume the government imposes a price ceiling on the cigarette market. Construct a cigarette demand and supply market. Give EXPLAINATIONS (5) how non-binding and/ binding price ceilings cause a decrease in market efficiency.
Bida Ltd. is a small scale company which manufactures three products namely; Exe, Wye and Zed. The company has two departments: Assembly and Machinery which require the same level of labour expertise. The following information relates to the operations of Bida Ltd.: In the period commencing 1 March 2005 and ending 28 February 2006, the company budgeted for: Fixed overheads (Sh.) 3,000,000 Capacity – Machinery (hr) 50,000 Assembly department (hr) 75,000 The standard costs per unit of each product are: Exe Wye Zed Selling price 2,000 1,580 2,240 Variable costs: 700 400 800 Direct material 480 320 560 Direct labour – machinery department (Sh.80 per hour) 480 320 560 Assembly department (Sh.60 per hour) 360 390 420 Total variable costs 1,540 1,110 1,780 Information in respect to the maximum demand for each product which Bida Ltd. could alternatively source from an independent supplier, for the same quality, is given below Product Maximum demand (units) Price quoted by external supplier per unit (Sh.) Exe 3,000 1,750 Wye 2,500 1,400 Zed 5,000 2,000 Required: Briefly explain the term “limiting factor.” (2 marks) Identify and compute the limiting factor for Bida Ltd. (4 marks) Determine which product(s) should be sourced from the external supplier and the relevant quantities. (9 marks)
Which of the following properly describes the interest-rate effect? a. A higher price level leads to higher money demand, higher money demand leads to higher interest rates, and a higher interest rate increases the quantity of goods and services demanded. b. A higher price level leads to higher money demand, higher money demand leads to lower interest rates, and a lower interest rate reduces the quantity of goods and services demanded. c. A lower price level leads to lower money demand, lower money demand leads to lower interest rates, and a lower interest rate reduces the quantity of goods and services demanded. d. A lower price level leads to lower money demand, lower money demand leads to lower interest rates, and a lower interest rate increases the quantity of goods and services demanded.
A market failure occurs when the supply of a good or service is insufficient to meet demand. This results in an inefficient distribution of resources among market participants. Hence government need to intervene to bring efficiencies. Explain any four tools available for government interventions to deal with the market failures with suitable examples.