Suppose the conditions of the first welfare theorem hold. If the government redistributes income prior to production and trade occurring, the market outcome (resulting from production and trade) will be the same as it would have been had the government not redistributed income (so long as redistribution does not produce deadweight losses).
Answer the following statement true (T) or false (F)
False
Rationale: This is only true when tastes are quasilinear.
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There are four lighthouses on the island of Sand. If this is the efficient quantity of lighthouses, ________
A) the marginal social benefit of the fourth lighthouse equals its marginal social cost B) total social benefit is zero C) marginal social benefit minus marginal social cost is a maximum D) Both answers A and C are correct.
When firms incur unplanned inventories, they typically
a. build new plants. b. call for more government spending. c. hire more workers and increase production. d. lay off workers and reduce production.
A franchisee works than a salaried manager of company store because
a. Less, he doesn't get to keep the additional profits he generates b. Harder, he gets to keep the additional profits he generates c. Lesser, he is generally lazy d. Harder, he doesn't get to keep the additional profits he generates
What is the difference between a firm's assets and its liabilities?
What will be an ideal response?