Topic#1-Scarcity, Resource Allocation, the Central Economic
Topic#1-Scarcity, Resource Allocation, the Central Economic Problem and Economic Systems. Each question in this section will be graded out of 10 points. (1)â€œOne of the best ways to test the success of an economic system is to assess its progress against income-wealth inequality.â€ Present three (3) arguments either for OR against this proposition. (explain) (2a)What is the scope of study of macroeconomics? (2b)Is the â€œcentral economic problemâ€ of macroeconomics in principle identical to the â€œcentral economic problemâ€ of microeconomics? Give a rationale for your answer. (2c)What is meant by the term â€œthe efficient allocation of scarce resourcesâ€ in a national economy? (2d)Why is the efficient allocation of scarce resources an important concern for macroeconomists? (2e)How do principles#1 and #2 relate to the â€œcentral problemâ€ faced by the US macro economy? (2f)Is the assertion of neoclassical economists that a â€œtrade-offâ€ is inevitable between efficiency and equity valid? Why or Why not? Clearly explain your answer.