The distinction between efficiency and equality can be described as follows:
a. Efficiency refers to maximizing the number of trades among buyers and sellers; equality refers to maximizing the gains from trade among buyers and sellers.
b. Efficiency refers to minimizing the price paid by buyers; equality refers to maximizing the gains from trade among buyers and sellers.
c. Efficiency refers to maximizing the size of the pie; equality refers to producing a pie of a given size at the least possible cost.
d. Efficiency refers to maximizing the size of the pie; equality refers to distributing the pie fairly among members of society.
d
You might also like to view...
In order to manage risk of failure and protect guarantors, the Employee Retirement income Security Act (ERISA) established all of the following requirements on pension funds except for minimum
A) disclosure of information. B) reporting requirements. C) investment standards. D) risk-based capital requirements.
One reason that deadweight losses are so difficult to avoid is that
a. taxes affect the decisions that people make. b. income taxes are not paid by everyone. c. consumption taxes must be universally applied to all commodities. d. the administrative burden is hard to calculate.
According to liquidity preference theory, if the price level decreases, then
a. the interest rate falls because money demand shifts right. b. the interest rate falls because money demand shifts left. c. the interest rate rises because money supply shifts right. d. the interest rate rises because money supply shifts left.
If John drives more recklessly because he has good automobile insurance, it is an example of moral hazard.
Answer the following statement true (T) or false (F)