In and Edgeworth Box economy, no one strictly prefers the endowment allocation to the competitive equilibrium allocation.
Answer the following statement true (T) or false (F)
True
Rationale: The competitive equilibrium allocation arises from individuals voluntarily choosing along the budget constraint that passes through the endowment allocation -- and thus, if someone gets something other than his endowment allocation in equilibrium, it is because he chose that bundle over his endowment bundle.
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A U.S. company is attempting to cut costs by shifting some of its services to Thailand. This process of shifting production of products or services overseas to cut costs often results in
A) lower production quantities of those products or services. B) lower consumer prices on those products or services. C) greater potential for market failure for those products and services. D) greater economic uncertainty in the market for those products and services.
Between 1870 and 2010, among the United States, Germany, Japan, and Australia, ________ grew at the fastest rate and ________ grew at the slowest rate
A) United States; Germany B) Germany; United States C) Australia; Japan D) Japan; Australia
What is the difference between marginal and average tax rates? Under what marginal and average tax rate conditions would an income tax be progressive?
What will be an ideal response?
Financial intermediaries are best described as:
a. informal institutions that provide funds to the government to manage budget deficits. b. institutions that accept deposits and make loans. c. institutions that control the money supply in the economy. d. institutions that provide financial aid to foreign countries. e. individuals who manage other's investment portfolios.