A situation is efficient if it is:
A. not possible to find a transaction that will make at least one person better off without harming others.
B. possible to find a transaction that will make everyone better off.
C. possible to find a transaction that will make at least one person better off, even if others are made worse off.
D. possible to find a transaction that will make at least one person better off without harming others.
Answer: A
You might also like to view...
When society receives more benefits from a good than the individuals who consume the good,
a. the marginal social benefit for the good is less than the marginal social cost b. too much of the good would be produced by a private market c. property rights are assignable and well defined d. the good produces a positive externality e. the good is exhaustible with fixed-production technology
Given a one-year Canadian bond with a yield of 8 percent, what will be the U.S. investor's rate of return at maturity if the Canadian dollar appreciates 10 percent against the U.S. dollar?
a. 2 percent b. 8 percent c. 10 percent d. 18 percent e. 25 percent
In the long run,
a) nominal wages rise more slowly than prices b) output is independent of the price level c) real wages are higher than money wages d) a higher price level elicits a sustained increase in production e) the aggregate demand curve is perfectly horizontal
If this firm were a perfect competitor, at what price would it charge in the long run?
A. $10.10 B. $12.80 C. $14.20 D. $15.90