For the additive social welfare function to yield results, we must assume
A. individuals have identical utility functions.
B. individuals' utility functions have diminishing marginal utility of income.
C. the total amount of income available is fixed.
D. all of these answer options are correct.
D. all of these answer options are correct.
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If the marginal social cost exceeds the marginal social benefit for the last pair of shoes produced, then the economy is producing more than the efficient amount
Indicate whether the statement is true or false
State and explain the No Marginal Improvement Principle (for finely divisible actions).
What will be an ideal response?
The cross-price elasticity of demand measures:
A. the relationship between the demand for one good and the supply of another. B. the relationship between the demand for one good and the price of another. C. the relationship between the demand and supply of one good at the intersection of the curves. D. the elasticity of demand at the intersection of the supply and demand curves.
In reality, the actual size of the multiplier is about
A. 1. B. 1.4. C. 2. D. 4.