Microeconomics

In his classic treatise on public finance, Richard Musgrave says the e

In his classic treatise on public finance, Richard Musgrave says the economic activities of the state can be broken down into _____. a. allocation, distribution, production b. allocation, distribution, stabilization c. allocation, production, protection d. production, protection, allocation   ANSWER b  

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Date: September 9th, 2020

Which of the following is not a limitation of the Pareto criteria? a.

Which of the following is not a limitation of the Pareto criteria? a. Almost any policy change will make at least one person worse off. b. The status quo is lent legitimacy from being the starting point for evaluating social welfare. c. The criteria cannot tell us if a particular policy change will make all […]

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Date: September 9th, 2020

Employing utilitarianism as a measure of the public interest _____. a

Employing utilitarianism as a measure of the public interest _____. a. is inconsistent with the concept of a social welfare function b. attempts to minimize the problems associated with market failure c. attempts to maximize total utility in a society d. avoids comparing individual’s utilities   ANSWER c  

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Date: September 9th, 2020