A competitive equilibrium is Pareto-efficient because ?

Related Mcqs:

A reduction in the costs of production will ?

A. Lead to a movement along the supply curve B. Shift the demand curve C. Shift the supply curve D. Lead to an extension of supply...

Economists use the term Black Markets for situations where ?

A. goods are sold at prices above legal or official price. B. buyers and/or sellers are not paying taxes as they should C. illegal substances are sold D. transactions are not recorded in the GDP figures....

The allocation of resources is not efficient if ?

A. the marginal cost of production does not equal society’s marginal benefit B. the distribution is inequitable C. economic growth is low D. unemployment is high...

All of the following shift the supply of watches to the right except ?

A. an advance in the technology used to manufacture watches B. an increase in the price of watches C. All of these answers cause an increase in the supply of watches D. a decrease in the wage of workers employed to manufacture watches...

If the price in a market is fixed by the government above equilibrium ?

A. There is excess equilibrium B. There is excess supply C. There is excess demand D. There is equilibrium...