Answer the following statement(s) true (T) or false (F)
1. The Pareto criterion is a criterion under which any proposal that can be unanimously defeated should be rejected.
2. To be effective, a price ceiling needs only to be enforced.
3. If a tax and a price control have the same effect on the price paid by consumers, then the two policies will create the same deadweight loss.
4. Consumers will benefit from a tariff, because it helps domestic firms and generates revenue for the government.
5. The value of a good is ultimately determined by the amount of labor needed to produce the good.
1. False
2. False
3. False
4. False
5. False
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Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
What will be the principal and most immediate effect on the supply or demand for raw cotton grown in the United States if the demand for peanuts (which can be grown on cotton land) increases?
A) Decrease in demand B) Decrease in supply C) Increase in demand D) Increase in supply
The response of output following a natural disaster includes
A) an increase in output demand and an increase in output supply. B) an increase in output demand and a decrease in output supply. C) a decrease in output demand and an increase in output supply. D) a decrease in output demand and a decrease in output supply.
When Trina can afford bundles A and B but not C, she purchases bundle A. When Trina can afford bundles A and C, but not B, she purchases bundle C
We can conclude her preference ordering of the three bundles is (in order from most preferred to least) A) C, A, B. B) B, A, C. C) A, C, B. D) A, B, C.