Graphs Of Microeconomic Analysis

(1) If you were to examine where the USA might be on its Utility Possibilities Curve, which, say, shows a trade-off in Utility between the Rich and the Poor sections of society (in terms of what each sector consumes), where do you think we would lie on the curve Given your opinion, who do you think placed us where we are on the curve The government Certain people Luck Are you content with where you have placed us Assuming that our markets are reasonably efficient, could you draw an Edgeworth Box that shows where you think the two classes of consumers lie Answer Utility possibility frontier for USA can be represented as The current position may be partially because of government and partially because of Luck. The US economy currently is going through rough patches. Unemployment rates are very high, growth rate is low and the private sector is not spending much and continues to be in surplus which has necessitated large public deficit to avoid a deeper slump. This has translated into large fiscal deficit in the United States (about 8.5 of GDP). Although all the section of society have been affected but it is the poor section of