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Suppose Santa Claus Actually Existed and Caused All Toy-Making Workers

Question 32

Multiple Choice

Suppose Santa Claus actually existed and caused all toy-making workers in America to lose their job.The Pareto optimal social policy would be to


A) even the playing field by making Santa charge the same price for toys as American toy firms.
B) require Americans to buy an equivalent amount of toys from American workers.
C) require Santa to buy an equivalent amount of American-made goods.
D) do nothing if displaced workers can quickly find jobs paying the same or more.

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