The key difference between the Pareto optimality and Pareto superiority is that ______
a. Pareto optimality is incompatible with utilitarianism, while Pareto superiority is compatible
b. Pareto superiority is superior to Pareto optimality
c. Pareto optimality requires interpersonal utility calculations, while Pareto superiority does not
d. Pareto optimality refers to a state of the world while Pareto superiority compares two states of the world
d
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Refer to Figure 11.2. Suppose that Ca = 40, MPC = 0.8, I = 10. What is the value of consumption in equilibrium?
A) 32 B) 80 C) 240 D) 320
During a time of high unemployment, a country can increase the production of one good or service
A) by using resources in the production process twice. B) without decreasing the production of something else. C) and must increase the production of something else. D) but must decrease the production of something else. E) but the opportunity cost is infinite.