If a society only cares about efficiency and not equity, then
A) all points on the contract curve yield the same level of social welfare.
B) it will not rely on competitive markets to allocate goods.
C) it will maximize the utility of its worst-off member.
D) an equitable outcome is impossible.
A
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If the government is most interested in minimizing excess burden of an excise tax, should it impose the tax on goods that are elastic or on goods that are inelastic?
What will be an ideal response?
With a partial trade agreement
A) goods and services are allowed to cross boundaries without tariffs. B) two or more countries agree to liberalize trade in a selected group of categories. C) two or more countries set common tariffs toward non-members. D) two or more countries allow the free mobility of inputs such as labor and capital. E) two or more countries agree on establishing a common currency.
Macroeconomics is the study of:
What will be an ideal response?
Relative to a profit-maximizing monopolized industry that is producing 8,000 units of output at a price of $10 per unit, a competitively organized industry under the same circumstances would produce ________ units of output and charge a price of ________ per unit.
A. 8,000; $10 B. less than 8,000; less than $10 C. less than 8,000; more than $10 D. more than 8,000; less than $10