When a policy creates the most social gain possible, it is considered "best" by the
a. efficiency criterion.
b. Pareto criterion.
c. Edgeworth criterion.
d. maximin criterion.
a. efficiency criterion.
You might also like to view...
Gross domestic product (GDP) is the ________ in a given time period
A) value of personal consumption expenditures, gross private domestic investment, and federal government expenditures B) sum of wage and salary compensation of employees and corporate profits C) value of all final and intermediate goods and services produced by the economy excluding those goods exported to foreign nations D) market value of final goods and services produced by the economy
The marginal product of labor curve is the demand curve for labor
Indicate whether the statement is true or false
Suppose that X and Y are substitute goods. If the price of good X increases, we can expect:
a. the demand for good X to shift to the left. b. an upward movement along the demand curve for good Y. c. the demand curve for good Y to shift to the right. d. a downward movement along the demand curve for good Y. e. the demand curve for good Y to shift to the left.
Refer to the above diagram. Marginal utility:
A) increases at an increasing rate. B) becomes zero at 4 units of output. C) is found by dividing total utility by the number of units purchased. D) cannot be calculated from the total utility information.