One consequence of the second welfare theorem is the fact that the allocation of goods achieved through competitive markets:
A. is always Pareto efficient.
B. can be extremely inequitable.
C. satisfies the conditions of egalitarianism.
D. is free of market failures.
B. can be extremely inequitable.
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Assume that the government of the state of New Jersey has determined that a large number of injuries and deaths have occurred as a result of accidents involving the installation and repairs of electrical equipment at private residences
In reaction to this problem the state assembly decided to pass a law which made a requirement that all certified electricians take and pass a tougher state licensing examination. Analyze the impact that this law is likely to have on the market for electricians and explain why safety may not necessarily improve.
Under the Exchange Rate Mechanism of the European Monetary System, when the British pound depreciated below its lower limit against the German mark, the German central bank was required to buy ________ and sell ________,
thereby ________ international reserves. A) pounds; marks; losing B) pounds; marks; gaining C) marks; pounds; gaining D) marks; pounds; losing
The total civilian labor force is comprised of
A) the unemployed and the employed. B) only the employed. C) all individuals over 16 years of age, whether or not they work or are seeking work. D) only full-time employed individuals between the ages of 18 and 55.
From 1700-1780, the colonial population increased at a rate of approximately 3 percent per year. This rapid population growth was primarily due to
a. immigration from England. b. immigration from central Europe. c. higher birth rates in the colonies than in Europe. d. importation of slaves from Africa.