If everyone's utility is given equal weight and a change in resource allocation results in one person's gain exceeding another person's loss, we can say that the new allocation
A) is Pareto superior to the original one.
B) increases social welfare.
C) decreases social welfare.
D) is efficient.
B
You might also like to view...
Macro National Bank, a commercial bank, holds $1 million in vault cash, $15 million in government and corporate bonds, $40 million in demand deposits, $10 million on deposit with a Federal Reserve bank, and $8 million worth of property. What are Macro National Bank's total liabilities?
a. $40 million b. $48 million c. $50 million d. $51 million e. $65 million
If the price level in the current period is higher than what buyers and sellers anticipated,
a. profit margins will be unattractive and firms will expand output. b. profit margins will be unattractive and firms will reduce output. c. profit margins will be attractive and firms will expand output. d. profit margins will be attractive and firms will reduce output.
Which one of the following would supply dollars to the foreign exchange market?
a. the spending of U.S. tourists in Europe b. the purchase of U.S. automobiles by Japanese consumers c. the sale of U.S. automobiles to European consumers d. the purchase of an American electronics factory by a Japanese investor
In markets with imperfect information:
A. buyers and sellers will use resources to acquire information before making decisions. B. buyers will use resources to acquire information before making a decision, but sellers do not need to acquire additional information before making a decision. C. sellers will use resources to acquire information before making a decision, but buyers do not need to acquire additional information before making a decision. D. neither buyers nor sellers will be able to acquire information in order to make decisions.