If a policy helps some but harms others
A) the result is a Pareto improvement for the people who are helped.
B) then the cost-benefit analysis will show a net increase in surplus and is therefore desirable.
C) we cannot use the Pareto principle to evaluate whether or not the policy is desirable.
D) it is too hard to determine whether or not the outcome is desirable.
C
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"The value of the next best alternative" defines
A. the Law of Increasing Costs. B. the economic problem. C. allocative efficiency. D. opportunity cost.
Financing government spending by selling bonds to the public, which pays for the bonds with currency,
A) leads to a permanent decline in the monetary base. B) leads to a permanent increase in the monetary base. C) leads to a temporary increase in the monetary base. D) has no net effect on the monetary base.
The most profitable output level can be found by looking at which two curves?
a. P and MR. b. MR and MC. c. MC and TC. d. P and AVC. e. AVC and ATC.
Progressive income tax structures tend to make incomes less equal.
Answer the following statement true (T) or false (F)