Multiple Choice
A Pareto optimum
A) can be found in a closed and open economy.
B) is found where the budget line is tangent to the indifference curve.
C) is the same as a competitive equilibrium.
D) is where the consumption line is tangent to the PPF.
E) is the slope of the PPF.
Correct Answer:
Verified
Correct Answer:
Verified
Q19: In an economic model, an exogenous variable
Q20: Changes in government spending are not likely
Q21: The substitution effect that results from a
Q22: A Pareto optimum is a point that<br>A)
Q23: In the one-period competitive model we have
Q25: A competitive equilibrium may fail to be
Q26: The presence of a distorting tax on
Q27: The production possibilities frontier in the one-period
Q28: Examples of exogenous variables include<br>A) real wages,
Q49: In the basic one-period model in Chapter