If markets are Pareto efficient,
a) no one benefits from redistribution
b) redistribution is a zero-sum game
c) arbitrage opportunities exist
d) resource allocation is sub-optimal
e) resources are fully utilized but output remains unsold
b) redistribution is a zero-sum game
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Which of the following factors will lead to a decrease in the current supply of a good?
A. A technological advance that decreases production costs B. A fall in the current price of a good or service C. A decrease in the price of inputs to the production process D. A belief that the price of a good or service will go up in the future
The quantity theory of money states that in the long run
A) the price level will not consistently rise, it will fluctuate. B) an increase in the quantity of money results in an equal percentage increase in the price level. C) a rise in the price level rises causes the quantity of money to increase. D) an increase in the quantity of money increases real GDP by a smaller percentage.
The wage rate is the opportunity cost of
A) leisure. B) consumption. C) working overtime. D) working.
Both the International Monetary Fund and the World Bank were established
A) at the end of World War I. B) at the end of World War II. C) in the 1960s. D) in the 1970s.