In a competitive market, an efficient allocation of resources is characterized by:
a. a price greater than the marginal cost of production.
b. the possibility of further mutually beneficial transactions.
c. the largest possible sum of consumer and producer surplus.
d. a value of consumer surplus equal to that of producer surplus.
c
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Which two goods will most likely have indifference curves that are straight lines?
A) blue and red balloons B) left and right shoes C) pizza and hair spray D) beef and chicken
Those who believe that overall economic growth is more important than the distribution of income would say that:
A. if everyone is getting richer, the relative speed of these gains isn't as important. B. it is fundamentally unjust for some people to have so much when others have so little. C. if the society is not getting richer, then things can never become more equal. D. All of these are true.