If the utility function (U) between food (F) and clothing (C) can be represented as U = , the marginal rate of substitution of clothing for food equals A) -C/F. B) -F/C. C) – . D) – . ANSWER A
Date: September 9th, 2020
Market exchange assumes that _____. a. there are no monopolies b. prisoner dilemmas are nonexistent c. parties to the exchange have well-defined property rights d. the public sector is failing its job ANSWER c
Date: September 9th, 2020
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
Date: September 9th, 2020
Which of the following is not a drawback of utilitarianism? a. There exists no valid way to make interpersonal utility comparisons. b. Is incompatible with the Pareto criteria. c. It is not directly compatible with economic efficiency. d. It implies social arrangements that most people would find objectionable. 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
The market system is based upon _____. a. money b. voluntary exchange c. capitalism d. profits ANSWER b
Date: September 9th, 2020
_____ a cornerstone of the market economy. a. Mutually beneficial exchange is b. A strong central bank c. Monopoly rents are d. Government regulation is ANSWER a
Date: September 9th, 2020
