A Pareto improvement
a. cannot take place unless a side payment is made
b. cannot take place unless a market is perfectly competitive
c. cannot occur unless both parties to a transaction enjoy positive net benefits
d. will increase the total net benefits available in a perfectly competitive market
e. occurs whenever the sum of market consumer surplus and market producer surplus is positive
D
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When the value of exports exceeds the value of imports then
A) changes in productivity will occur. B) international trade is in balance. C) the country is running a trade deficit. D) the country is running a trade surplus.
If the government were to increase taxes, it would be enacting:
A. contractionary fiscal policy. B. expansionary fiscal policy. C. contractionary monetary policy D. expansionary budgetary policy.
The goal of contractionary monetary policy is to:
A. increase interest rates to slow down the economy. B. increase interest rates to stimulate the economy. C. reduce interest rates to slow down the economy. D. reduce interest rates to stimulate the economy.
Which of the following cost functions exhibits cost complementarity?
A. 4Q2Q1 + 8Q1. B. ?4Q1Q2 + 8Q1. C. ?4Q2 + 8Q1. D. 6Q1Q2 ? Q1.