In real-world markets
a. economic efficiency is rare because making voluntary transactions is difficult
b. economic efficiency is rare because Pareto improvements are difficult to make
c. economic efficiency is best thought of as a continuum
d. perfect competition is an impediment to economic efficiency
e. every possible Pareto improvement is exploited
C
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Other things remaining the same, if an industry introduces a labor-complementary technology in production, the demand curve for labor in that industry is likely to:
A) shift to the left. B) shift to the right. C) become vertical. D) become horizontal.
Suppose the market-clearing price of wheat is $2.50 per bushel. What would happen if wheat farmers persuaded the government to set a legally-mandated price support of $3.75 per bushel?
A) The quantity demanded of wheat would fall. B) The quantity supplied of wheat would rise. C) A surplus of wheat would occur. D) All of the above.