The key difference between the Pareto optimality and Pareto superiority is that ______
a. Pareto optimality is incompatible with utilitarianism, while Pareto superiority is compatible
b. Pareto superiority is superior to Pareto optimality
c. Pareto optimality requires interpersonal utility calculations, while Pareto superiority does not
d. Pareto optimality refers to a state of the world while Pareto superiority compares two states of the world
d
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A student makes the following statement: "The real problem with pure public goods is that they are nonrival and nonexcludable." Explain whether you agree or disagree with the student's statement
What will be an ideal response?
If the government finances its spending by issuing debt to the public, the monetary base will ________ and the money supply will ________
A) increase; increase B) increase; decrease C) decrease; increase D) not change; not change
A decrease in labor productivity and the real wage could be caused by
A) a decrease in demand for labor or an increase in the supply of labor. B) a decrease in the demand for labor or a decrease in the supply of labor. C) an increase in the demand for or supply of labor. D) an increase in the demand for labor or a decrease in the supply of labor.
An input combination is an interior choice if and only if:
A. it lies below the isocost line. B. uses at least a little bit of every input. C. lies on an isoquant. D. satisfies the tangency condition.