Answer to Question #266021 in Macroeconomics for Ayush

Question

Describe how institutions, biology, technology, and preferences combine to

determine the following:

a.Technically feasible set.

b.Contract curve.

c.Final outcome.

Answer 1

Technology, biology, economic institutions and people's preferences are all vital elements of economic outcomes. The collaborations between economic performers can lead to common gains, but it may also result to wars over how the supply of gains is done.

Institutions are rules that administer what people do when they relate in a dual project and the supply of products of their dual effort. Institutions impact the power and other negotiating benefits of performers. The standards of effectiveness and equality in this case may help in the appraisal of economic institutions and the results of economic relations.