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
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
_____ 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
The idea that the public interest should be equated with those policies that produce the greatest good for the greatest number _____. a. is the utilitarian criterion b. is the Pareto optimality criterion c. is the Hobbesian criterion d. is a value free judgment ANSWER a
Date: September 9th, 2020
