Winter 2018 6 True or false All production points on the pro

Winter 2018 6. True or false. All production points on the production possibility frontier are allocatively efficient. Explain. Fa ge 7. An equitable distribution of a good can imply an unequal distribution of the good among members of society because it depends upon society\'s preferences. 8. Based on the hypothetical information in the chart below relating to rates of surgery in Canada: Utilization Rates for Coronary Artery Bypass Surgery 35

Solution

6) The correct choice is false

Explanation :- Points on the production possibilities frontier represent efficient level of production. The economy is producing efficiently on points A,B & C . Point F represents on inefficient outcome.

7) The correct choice is True

Explanation : - The needs of the society varies from person to person. Some members of the society prefer more of a good than other members. For example, aged members of the society require more of healthcare than younger members of the society. Hence if we distribute health care benefits equally among all the members of the society, it results in unequal distribution because some members of the society receive less healthcare benefits when they require more and some members receive more healthcare benefits when they require less.