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
The fact that government has a monopoly on force _____. a. means that government can protect individual rights but is strong enough to violate them b. means that government can protect individuals rights yet is strong enough not to violate them c. means that individuals have secure and well-defined property rights d. means that individuals […]
Date: September 9th, 2020
Which of these is an argument for using the potential compensation criterion? a. If the winners can compensate the losers, no one is harmed by employing the criterion. b. The criterion does not employ interpersonal utility calculations. c. If employed over a large number of policy changes, everyone should enjoy a net gain in the […]
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
Using the above figure and the Pareto criteria to determine the public interest, would a move from point A to point C be in the public interest? a. yes b. no c. possible, depending upon other factors d. cannot say using the Pareto criteria ANSWER d
Date: September 9th, 2020
Which of the following is not an institution used by government to secure rights? a. The police. b. The military. c. The courts. d. The copyright office. ANSWER d
Date: September 9th, 2020
