The Pareto Unanimity axiom in Arrow's theorem implies that Arrow believes social choice processes should choose only pareto efficient outcomes.
Answer the following statement true (T) or false (F)
False
Rationale: The pareto unanimity axioms simply says that, in the event everyone agrees that one thing is preferable to another, the social choice process should respect such unanimity. That does not imply that the social choice process will choose efficient outcomes.
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Exhibit 6-16 Long-run average cost curves
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Which firm in Exhibit 6-16 displays a long-run average cost curve with economies of scale throughout the range of output shown?
A. Firm A. B. Firm B. C. Firm C. D. Firms A and B.
Let's assume producers in Canada can make 200 units of beef or 50 units of oranges, and U.S. producers can make 50 units of beef or 200 units of oranges per time period. Producers in which nation have an incentive to specialize in beef production?
A) The U.S. B) Canada C) Both of the above have an incentive to specialize in beef production. D) Neither of the above have an incentive to specialize in beef production.
McDonald's and its major competitors compete based:
A) only on the price. B) only on the basis of product characteristics. C) on both the price and product characteristics. D) none of the above because the fast-food industry is perfectly competitive.
Classical macroeconomic theory was discredited and gave way to the first Keynesian approach as a result of
A) the collapse of the gold standard at the outset of World War I. B) the Great Depression of the 1930s. C) the wage-price controls of World War II. D) the rapid inflation of the late 1960s. E) the switch from fixed to flexible exchange rates in the early 1970s.