The government protects rights in a market economy by providing _____. a. production b. allocation c. registration d. courts ANSWER d
Date: September 9th, 2020
The optimal level of rights protection is _____. a. zero b. the marginal cost of additional protection equals the market price of the good c. the marginal cost of additional protection equals the marginal benefit of the good d. absolute ANSWER c
Date: September 9th, 2020
Outcomes are likely to be Pareto superior if they were _____. a. approved of by a unanimous vote b. enacted by a bureaucrat c. decreed by a judge d. enacted by bipartisan legislation ANSWER a
Date: September 9th, 2020
Which of the following would not satisfy the potential compensation criterion? a. The winners from a policy change could compensate the losers so everyone would be better off. b. The policy change was approved by a unanimous vote. c. The policy change was a Pareto superior move d. The policy change moved from a Pareto […]
Date: September 9th, 2020
Government regulation can improve economic efficiency if _____. a. regulators encourage uncompetitive markets to act competitively b. regulators have private information firms do not have c. regulators are able to coordinate inter-industry actions to achieve efficiencies d. regulators base their actions on the revealed preferences of market participants ANSWER a
Date: September 9th, 2020
When comparing public and private schools, the voluntary choice of going to a private school _____. a. is a Pareto optimal move b. is a Pareto superior move c. is neither Pareto optimal nor Pareto superior d. cannot be evaluated according to the Pareto criteria ANSWER b
Date: September 9th, 2020
Utilitarianism is inconsistent with _____. a. the social welfare function b. cost-benefit analysis c. the Pareto criteria d. slavery ANSWER c
Date: September 9th, 2020
The key difference between the Pareto optimality and Pareto superiority is that ______. a. Pareto optimality is incompatible with utilitarianism, while Pareto superiority is compatible b. Pareto superiority is superior to Pareto optimality c. Pareto optimality requires interpersonal utility calculations, while Pareto superiority does not d. Pareto optimality refers to a state of the world […]
Date: September 9th, 2020
The Pareto superiority concept _____. a. is equivalent to utilitarianism b. is equivalent to equilibrium in a perfectly competitive market c. compares two different states of the world d. looks at a state of the world and judges its superiority ANSWER c
Date: September 9th, 2020
The Pareto optimality concept is _____. a. equivalent to the concept of economic efficiency b. equivalent to Pareto superiority c. equivalent to utilitarianism d. equivalent to cost-benefit analysis ANSWER a
Date: September 9th, 2020
