Any policy change that results in a Pareto-superior allocation
A) will increase welfare under certain conditions.
B) must increase welfare.
C) will leave welfare unchanged.
D) will have an unpredictable effect on welfare.
B
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Suppose that the quantity of cars demanded exceeds the quantity of cars supplied. We would expect that
A) the price of cars will increase. B) the price of cars will decrease. C) the supply will increase (supply will shift to the right) to meet the demand. D) the demand will decrease (demand will shift to the left) to meet the supply.
How would each of the following changes affect the steady-state values of the capital—labor ratio, output per worker, and consumption per worker? (a) A change in the composition of the capital stock raises the depreciation rate
(b) A change in social mores lowers the population growth rate. (c) Government tax policies change to encourage a higher saving rate. (d) A supply shock reduces productivity sharply.
The worst recessions after World War II occurred
A) during 1945-1946 and 1973-1975. B) during 1957-1958 and 1973-1975. C) during 1973-1975 and 1981-1982. D) during 1945-1946 and 1981-1982.
During recessions, who would tend to call for more government spending?
A. Liberals B. Conservatives C. Both liberals and conservatives D. Neither liberals nor conservatives