Explain the logic behind the First Theorem of Welfare Economics
What will be an ideal response?
A competitive market allows all the voluntary trades desired by people who face the same price. No additional voluntary trades can occur so there is no way to make someone better off. Thus, a competitive equilibrium is efficient.
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TSA could sign up some _____________ people willing to pay for less hassle at airport security -- if they don't have to make an appointment to have fingerprints and IDs scanned
Fill in the blank(s) with the appropriate word(s).
Given the broadest interpretation of technology, technology will include which of the following?
A) how well firms are run B) the organization and sophistication of markets C) the political environment D) the list of blueprints defining the types of products and the techniques available to produce them E) all of the above
If an industry has 25 firms that collectively have $150 million in total sales and the top three firms in this industry account for $78 million in sales and the fifth through twenty-fifth firms account for $60 million in sales, what is the amount of
sales for the fourth largest firm? A) $12 million B) $6 million C) $18 million D) none of the above
Waste produced by a power plant that harms local fishing industries is an example of a:
A. demerit good. B. limited liability. C. negative externality. D. private good.