Policy B will be judged to be better than another by the Pareto criterion when
a. Policy B is preferred unanimously.
b. Policy B would win a majority of votes.
c. there is no deadweight loss associated with Policy B.
d. any fair minded person would recognize that Policy B is fair and equitable.
a. Policy B is preferred unanimously.
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Suppose that a large dairy farmer is able to raise the market price of milk by withholding milk supply from the market. In this instance,
a. the milk market is perfectly competitive b. buyers will decrease their demand for milk c. buyers will increase their demand for milk d. the milk market is imperfectly competitive e. the milk market will collapse in the long run
Positive statements are
a. prescriptive. b. claims about how the world should be. c. claims about how the world is. d. made by economists speaking as policy advisers.
Which of the following industries is least likely to exhibit the characteristic of free entry?
a. selling running apparel b. satellite radio c. yoga studios d. wheat farming
If marginal utility is positive but diminishing, then
A) average utility must be negative. B) total utility must also be diminishing. C) total utility must be positive. D) marginal utility must be more than total utility.