The fact that at the competitive equilibrium nobody can be made better off without making someone else worse off implies that
A) the equilibrium is pareto efficient.
B) the equilibrium is not pareto efficient.
C) the prices need to adjust further.
D) further gains from trade are possible.
A
Economics
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Suppose a country decreases government purchases by $400 billion. Suppose the government spending multiplier is 1.5 and the economy's real GDP is $8,000 billion. This contractionary policy action shifts the aggregate demand curve to the left by
A) $12,000 billion. B) $600 billion. C) $533.3 billion. D) $266.6 billion.
Economics
A firm that sought to "maximize market share" would choose to produce an output level for which marginal revenue was equal to
a. marginal cost b. average cost. c. price. d. zero.
Economics