Any efficient allocation has to be such that everyone would agree to switch to that allocation from the endowment allocation -- or at least no one would object to such a switch.
Answer the following statement true (T) or false (F)
False
Rationale: That is true for mutually beneficial allocations -- which are mutually beneficial with reference to the endowment allocation. But it is not true for efficient allocations -- it's generally efficient to give everything to one person, even if that makes everyone else worse off. That's because an allocation is efficient so long as it cannot be changed in a way as to make some people better off without making anyone else worse off -- and that is the case at an allocation where one person gets everything.
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Consider an economy that only produces steel and shoes; steel is capital intensive and shoes are labor intensive. How will emigration of labor from this economy affect the marginal productivity of labor?
a. It will fall. b. It will not change. c. It will rise. d. It will fall in the short run and rise in the long run.
Australia is a net exporter of wool, free trade will benefit the ________.
A. rich citizens of the Australia B. poor citizens of the Australia C. domestic consumers D. domestic producers
Which of the following has not been suggested as a reconciliation of Leontief's findings?
A) international differences in tastes B) U.S. tariff structure C) failure to take into account natural resources D) temporary data problems immediately after World War II
When a unit tax is placed on a supplier they are generally able to shift a portion of the burden to demanders by raising the prices paid by demanders
a. True b. False