A Pareto improvement is
a. an action in which the gains to the gainers outweigh the losses to the losers
b. any action that does not harm a third party
c. an action that makes at least one person better off, and no one worse off
d. any action that involves a side payment to a third party
e. the typical outcome of government action
C
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Real income will rise from one year to the next if nominal income
A. rises and the price level rises faster. B. falls and the price level falls faster. C. falls faster than the price level. D. falls and the price level rises.
A firm's basic goal is best described as
A) maximizing total revenue. B) maximizing sales. C) maximizing profit. D) minimizing total cost.
The rule of caveat emptor
(a) is the supreme rule throughout our economy today. (b) still exists, but only outside of the extensive framework of government regulations of business. (c) is essentially the only rule with regard to buying and selling in our economy that is consistent with the concepts of freedom and liberty enshrined in our Constitution. (d) is of little importance in our economy today.
The amount of time that it takes between recognizing an economic problem and implementing policy to solve it is
A) the recognition time lag. B) the effect time lag. C) the action time lag. D) fiscal policy.