A competitive equilibrium is Pareto optimal if there is no way to rearrange or to reallocate goods so that
A) anyone can be made better off.
B) no one can be made worse off.
C) someone can be made better off without making someone else worse off.
D) someone can be made better off without making everyone else worse off.
Correct Answer:
Verified
Q19: A relationship that shows the technological possibilities
Q20: In the one-period competitive model we have
Q21: An externality is any activity for which
Q22: The PPF determines
A) all possible outcomes for
Q23: PPF is the
A) price parity formula.
B) possible
Q25: The rate at which one good can
Q26: The concept of Pareto optimality is a
A)
Q27: The second fundamental theorem of welfare economics
Q28: A competitive equilibrium has all of the
Q29: The presence of a distorting tax on
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