Describe the choices that consumers make and explain why ...

[panfilo]

Describe the choices that consumers make and explain why consumers are efficient on the market demand curve.
 
  What will be an ideal response?

Question 2

Tastes for products such as beer differ. As a result
 
  A) consumers of beer have difficulty deciding what type of imported beer to buy.
  B) the quality of imported beer is less than it could be.
  C) we see countries specializing completely in the production of beer.
  D) different countries may each have a comparative advantage in producing different types of beer.

[kkenney]

Answer to Question 1

Consumers allocate their budgets so they get the most value from their budgets. When consumers are on their demand curves, they are getting the most value out of their resources and are efficient.

Answer to Question 2

D