Which of the following is not an example of a Pareto improvement?
a. You buy a dozen oranges at a produce stand.
b. Two children trade baseball cards.
c. Your sister buys a new car.
d. Two adults trade cars.
e. A man is robbed at gunpoint.
E
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Last year, the price of heating oil was $4 per gallon, and Jonetta purchased 100 gallons of heating oil. This year, the price of heating oil falls to $3 per gallon while Jonetta's income is unchanged. Jonetta decides to share her good fortune by giving her retired father a gift of $100. Consider an indifference curve-budget line diagram with heating oil on the horizontal axis and "all other goods" on the vertical axis.
(i) Does the price change make Jonetta's budget line flatter or steeper? Justify your choice. (ii) After Jonetta gives the $100 gift, will her new budget line lie above, lie below, or pass through her initial optimum? Justify your choice. (iii) Sketch an indifference curve-budget line diagram that illustrates this situation. This year, will Jonetta be better or worse off than she was last year?
Under the Toxic Substances Control Act (TSCA)
a. a registration procedure is used to control the introduction of new chemical substances b. manufacturers are required to notify the government of a new chemical by the day it is introduced into commerce c. producers must notify the government 90 days before they plan to produce a new chemical d. the EPA has one year to evaluate the risks and respond to a manufacturer’s premanufacture notice (PMN) of a new chemical