What is Pareto optimality?
What will be an ideal response?
Pareto optimality (or Pareto efficiency) is a condition in which no change is possible that will make some members of society better off without making some other members of society worse off.
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The property of transitivity explains why indifference curves
A. cannot cross. B. bow-outward. C. are concave. D. slope upward.
Entry and exit continue in monopolistic competition until the remaining firms are
A) earning an economic profit. B) incurring an economic loss. C) earning less than a normal profit. D) earning zero economic profit. E) producing the normal amount of product differentiation.
If households spend $0.40 of each additional dollar of increased income, the expenditure multiplier will be
A) 1.67. B) 2.5. C) 4. D) 6.
External costs are those costs:
A. that fall directly on an economic decision maker. B. that fall indirectly on an economic decision maker. C. that are imposed without compensation on someone other than the person who caused them. D. that are both social costs and private costs.