Question: 7) What is allocative efficiency and how does it relate to the production possibilities frontier? 8) What conditions must be satisfied if resource are used

7) What is allocative efficiency and how does it relate to the production possibilities frontier? 8) What conditions must be satisfied if resource are used efficiently? 9) Why are social institutions such as firms, markets, property rights, and money necessary? 10) What are the main functions of market? 11) What are the flows in the market economy that go from firms to households and the flows from household to firm? 12) Explain the idea of a tradeoff and think of three tradeoffs that you have made today

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