Explain the objective of the benevolent social planner
What will be an ideal response?
The only goal of the benevolent social planner is to maximize the size of the economic pie, and she does this by using positive economic analysis in advising whether society is making the most of its scarce resources.
You might also like to view...
Because of their relatively small national economies, which of the following is most likely considered to be the most important factor for Belgium, Korea, and Canada to take full advantage of specialization?
A. division of labour B. international trade C. economies of scale D. command economy
A monopoly that price discriminates ______
A. benefits buyers because it offers the good at a variety of prices B. gains because it converts consumer surplus to economic profit C. uses resources more efficiently than would a competitive market D. enables buyers to maximize their consumer surplus
With respect to real per capita incomes, the United States' position
a. as leader has reversed with the United Kingdom since 1980. b. as leader has reversed with Canada since 1980. c. as leader has reversed with Sweden since 1980. d. has not changed much since 1980.
The term capital consumption allowance is defined as:
a. the amount of net interest in an economy each year. b. the estimated value of depreciation and obsolescence in investment goods. c. the difference between exports and imports. d. the disposition of disposable personal income. e. the difference between earnings not received and receipts not earned.