Describe the same marginal rate of substitution

Reference no: EM131490290

Question: Indicate whether each of the following statements is true, false, or uncertain, and justify your answer.

a. If everyone has the same marginal rate of substitution, then the allocation of resources is Pareto efficient.

b. If the allocation of .resources is Pareto efficient, then everyone has the same marginal rate of substitution.

c. A policy change increases social welfare if, and only if, it represents a Pareto improvement A An increase in a states cigarette tax in order to fund education is a Pareto-improving policy.

Reference no: EM131490290

Questions Cloud

Challenges relative to contract management systems : What are some other benefits and/or challenges relative to Contract Management Systems

Direction of the average kicking force : Then calculate the magnitude as well as the direction of the average kicking force, if you are given that the foot was in contact with the ball.

Is allocation of resources in this economy pareto efficient : Consider an economy with two people, Victoria and Albert, and two commodities, tea and crumpets. Cummtly, Victoria and Albert would both be willing.

How much is this investment worth at the end of year four : How much is this investment worth at the end of year four?

Describe the same marginal rate of substitution : Indicate whether each of the following statements is true, false, or uncertain, and justify your answer.

Analyze the information to find possible problems : Analyze the information to find possible problems with the way the field would be entered into the system

What is a reasonable price to pay for the security : what is a "reasonable" price to pay for the security?

Is such research a public good : Which of the following do you consider pure public goods? Private goods? Why?

Liquidity premium theory of term structure of interest rates : Under the Liquidity Premium Theory of the term structure of interest rates, what is the expected 3-year forward rate at the beginning of year 2 (2f3)?

User Account

All Pages