Aeconomy is currently in a pareto efficient situation where the quantity of apples produced is 500. which of the following statements must be true? 1. if the economy changes and produces 600 apples, someone is worse off ii. if the economy changes and produces 400 apples, someone is better off iii. if the person who is willing to buy the 501st apple would pay $1 for that apple, the mc of producing the 501st apple is not less than $1 a) only i must be true b) only ii must be true c) only l and il must be true d) only i and iil must be true e) all

The answer is C, only I and II must be true

Explanation:

According to Pareto, An economy is more efficient if it can make use of less resources to produce more goods and services a situation can be economically efficient if

1. No one can be made better off without making someone worse off. It is commonly referred to as pareto efficiency or pareto optimum.

2. No additional output can be obtained without increasing the amount of input

3. Production is done at the cost in which the cost of producing one unit of a product is very low.

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

answer founder's agreement;