A competitive equilibrium may fail to be Pareto-optimal due to
A) inequality.
B) externalities.
C) social efficiency.
D) profit maximizing firms.
E) government intervention.
Correct Answer:
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Q20: A competitive equilibrium is a state of
Q21: An increase in government spending
A) increases consumption,
Q22: The real wage is determined by
A) the
Q23: The concept of Pareto optimality is a
A)
Q24: Immunization from communicable diseases generate
A) overproduction.
B) a
Q26: An example of a negative externality is
A)
Q27: A Pareto optimum is a point that
A)
Q28: Much of the writings of Adam Smith
Q29: A competitive equilibrium has the following property:
A)
Q30: An externality is any activity for which
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