Let's assume a simple economy of two economic players, Victoria and Albert, and two goods, tea and bread. Now Victoria and Albert are going to trade two cups of tea for a piece of bread. Furthermore, suppose that the resources required to produce less than one cup of tea can be converted from one unit of tea production to three units of bread. Is resource allocation Pareto efficient in this economy? If not, should there be more tea or bread production? ------------------------------------------------------------------------------------- Say whether the following propositions are true, false, or impossible to judge and provide a basis for justifying your answer. a. The efficient supply of public goods takes place at the level at which each individual in the society values the same for the final unit. b. If goods are incompatible and exclusionary, they will never be produced in the private sector. c. Roads are not competitive because the use of one person does not reduce the use of others. d. Larger areas tend to consume more incompatible goods than smaller areas.