If all opportunities for Pareto improvements have been exhausted,
a. economic efficiency has been achieved
b. the allocation of goods and services is fair
c. perfect competition has been achieved
d. the economy is in disequilibrium
e. economic inefficiency has been achieved
A
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The crowding-out effect is
A) the tendency of expansionary fiscal policy to cause an increase in planned investment but not in planned consumption in the U.S. private sector. B) the tendency of contractionary fiscal policy to cause an increase in planned investment but a decrease in planned consumption in the U.S. private sector. C) the tendency of expansionary fiscal policy to cause a decrease in planned investment or planned consumption in the U.S. private sector. D) the tendency of contractionary fiscal policy to cause an increase in planned investment or planned consumption in the U.S. private sector.
Which of the following statements about production isoquants is correct?
A) They show all the combinations of two inputs that result in the same level of output. B) They are usually concave to the origin. C) They show all the combinations of two inputs that yield the same cost of production. D) They represent lower levels of output the farther they are from the origin.
The adoption of capital controls makes
A) everyone in the domestic economy better off. B) some domestic residents better off and some worse off, although on average welfare increases. C) some domestic residents better off and some worse off, although on average welfare decreases. D) everyone in the domestic economy worse off.
On a supply-and-demand diagram, consider a price for which the horizontal distance to the supply curve exceeds the horizontal distance to the demand curve. There is a __________ at that price and the current price must be __________ the equilibrium price
A) shortage; above B) shortage; below C) surplus; above D) surplus; below