A competitive equilibrium is Pareto efficient because at the competitive equilibrium,
A) prices have been allowed to adjust.
B) there are no further gains from trade.
C) the final outcome is different from the original inefficient endowment.
D) all members of society can be made better off.
B
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An exchange rate is the price of one country's currency in terms of another country's currency
Indicate whether the statement is true or false
Since an expensive sports car constitutes a greater portion of a consumer's budget than does laundry soap, the price elasticity of demand for an expensive sports car is _____
a. relatively less elastic b. unit-elastic c. perfectly inelastic d. relatively more elastic e. perfectly elastic
The U.S. experience with expansionary measures from 1930 to 1945
a. repudiated the pump-priming theory. b. verified the pump-priming theory. c. repudiated the multiplier theory. d. repudiated the deficit-spending theory.
Once a nation has been producing a good or service for some time,
a. its supply curve for that product is vertical b. its supply curve for that product is horizontal at the world price c. it often develops a comparative advantage in producing that good or service d. its moves along its production possibilities frontier and produces more of it e. its production possibilities frontier shifts outward