Pareto optimality is the condition in which
A. firms are forced to internalize the effects of all externalities.
B. the distribution of income is equal.
C. it is possible to make one person better off without making someone else worse off.
D. no change is possible that will make some members of society better off without making at least one other member of society worse off.
Answer: D
You might also like to view...
A decrease in the expected future exchange rate ________ the demand for U.S. dollars and shifts the demand curve for U.S. dollars ________
A) increases; rightward B) decreases; rightward C) decreases; leftward D) increases; leftward
Under monopolistic competition, firms make zero economic profit in the long run and produce at the minimum ATC
Indicate whether the statement is true or false
Assuming a real interest rate of four percent, which of these causes the largest increase in the present value of lifetime resources?
A) a winning lottery ticket that pays $9,600 today B) an additional $10,000 of income in the future period C) a salary increase of $5,000 both today and in the future period D) an additional $10,000 of current wealth
When various firms fail because their output is not demanded by society, workers may suffer
a. structural unemployment. b. frictional unemployment. c. seasonal unemployment. d. cyclical unemployment.