A Pareto preferred transaction is one where
A. the loser in a transaction loses less than the gainer gains.
B. the consumers must have moved to the contract curve.
C. all must gain welfare compared with the pre-transaction position.
D. no one loses and at least one person gains in the transaction.
Answer: D
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The natural right to life, liberty and pursuit of happiness is an idea of:
a. Hayek b. Schumpeter c. Marx d. Lange e. Locke
An example of an implicit cost is:
A. the value of a spare bedroom turned into a home office. B. wages paid to a family member who works at the firm. C. operating costs of a company-owned car. D. interest paid on a bank loan used to purchases equipment.
Most economists feel that creating a completely equal income for everyone would ______ the incentive to work.
a. increase b. decrease c. have little effect on d. externalize
Minneapolis business Rogue Chocolatier sells specialty chocolate bars with a high cocoa content. Rogue can produce 15 chocolate bars per day with one employee, 35 with 2, 50 with 3 and 55 with 4 employees. Which statement is TRUE?
A) Rogue's marginal product curve initially increases and then decreases. B) Rogue's marginal product curve decreases continually. C) Rogue's total product curve increases at an increasing rate. D) Rogue's marginal product curve decreases initially and then increases.