Economists know that if consumers and producers are both made better off, they would be without free exchange because the exchanges are
A. able to make producers better off by an amount that compensates consumers for their losses.
B. able to make consumers better off by an amount that compensates producers for their losses.
C. voluntary.
D. mandated by government.
Answer: B
You might also like to view...
Approximately how many women were estimated to be "missing" in China?
(a) 20-30 million (b) 35-48 million (c) 44-50 million (d) 52-58 million
In the expectations-augmented Phillips curve, ? = ?e - 3(u - 0.05). When ? = 0.06 and ?e = 0.03, the unemployment rate is
A) 0.04. B) 0.05. C) 0.06. D) 0.07.
Which of the following market structures is considered imperfectly competitive?
A. Perfect competition B. Monopolistic competition C. Monopoly D. All of these are considered imperfectly competitive.
By imposing tolls on the drivers that drive during the busiest times, a government would be attempting to:
A. internalize an externality. B. institute a progressive tax. C. externalize an internality. D. encourage driving to generate revenue.