The Pareto superiority concept _____
a. is equivalent to utilitarianism
b. is equivalent to equilibrium in a perfectly competitive market
c. compares two different states of the world
d. looks at a state of the world and judges its superiority
c
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Agreements among competing sellers to maintain prices and share markets
A) are usually unenforceable in court and illegal under many state laws and under federal law where applicable. B) are very common because they lead to economies of scale and hence greater efficiency. C) enable all sellers to cover their sunk costs but do not guarantee that any seller will be able to cover marginal cost. D) usually result in greater total output but also in higher prices to consumers.
The EU Emission Trading Scheme created a market for
A) permits to emit greenhouse gases. B) cigarettes. C) marijuana. D) devices that lower the global temperature.
Innovation in the U.S. was spurred by:
a. a free high school education in the U.S. b. an influx of capable immigrants c. an inexpensive patent system d. All of the above are correct.
Which of the following is correct concerning opportunity cost?
a. Except to the extent that you pay more for them, opportunity costs should not include the cost of things you would have purchased anyway. b. To compute opportunity costs, you should subtract benefits from costs. c. Opportunity costs and the idea of trade-offs are not closely related. d. Rational people should compare various options without considering opportunity costs.