A country is currently producing bricks and spatulas using all of their resource

Question

A country is currently producing bricks and spatulas using all of their resources and satisfying the wants of their economy. If the country has a change in preferences and wants more spatulas, which of the following is true? O A They are no longer economically efficient because they are not allocatively efficient They are no longer economically efficient because they are not technically efficient OCThe country will have a smaller marginal return from bricks O DThe country will have an increasing marginal cost of bricks

Explanation / Answer

1 The correct option is C, because of the reduced preference for bricks they will not be willing to apy more for the bricks.

2 The correct option is D, because it will lead to increased production in the economy and ppf will shift outward.

3 The correct option is C. The marginal return = Production from two worker - Production from one worker = (25 -15) = 10.

4 The correct answer is D, because we can analyse the impact of different situations through the values of variables included in the regression in different situations.

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