Which of the following would not satisfy the potential compensation criterion?
a. The winners from a policy change could compensate the losers so everyone would be better off.
b. The policy change was approved by a unanimous vote.
c. The policy change was a Pareto superior move
d. The policy change moved from a Pareto optimal position to a non-Pareto optimal position.
d
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If more firms enter a market that initially had 20 firms in it, then the Herfindahl-Hirschman Index will ________
A) increase B) decrease C) not change D) change in an unpredictable direction
One way to restructure Social Security to meet its future obligations would be to _____
a. lower the retirement age b. reduce Social Security benefits c. increase benefits only on the poor d. eliminating pay-as-you-go
What is a price floor?
The field of industrial organization addresses how the number of firms affects prices in a market and the efficiency of the market outcome
a. True b. False Indicate whether the statement is true or false