Exam 10: General Equilibrium and Economic Welfare

An initial allocation of goods is called a(n)

The fact that at the competitive equilibrium nobody can be made better off without making someone else worse off implies that

True or false? The Edgeworth box version of inter-personal trade requires the individuals to be in close proximity of one another.

The term "born with a silver spoon in his mouth" mistakenly implies

The First Theorem of Welfare Economics can be expressed as

By saying that MRS = MRT,an economist means that

A general equilibrium analysis of a price change in the corn chip market would include an investigation of the impacts in

Suppose in a democratic society,all voters prefer choice G over choice B; however,when the two choices are presented along with a third choice,R,B wins the election.This violates the assumption of

For most commonly used social welfare functions,an efficient allocation is

Competition results in the efficient product mix because

The end of slavery in the United States represented

The general equilibrium analysis of a minimum wage applied to only some sectors of the economy suggests that

-Suppose the production possibilities for two countries,producing either food or clothing,are shown in the above figure.They can each produce any linear combination as well.Assuming that consumers place equal value on both of these goods and that free trade between these two countries is possible,gains from trade

-Suppose the production possibilities for two countries,producing either food or clothing,are shown in the above figure.They can each produce any linear combination as well.Suppose each country is in competitive equilibrium prior to free trade being allowed.Once free trade is allowed,the price of food will be

Reparations for slavery in the United States would

Every point on the joint production possibilities frontier represents

-Suppose the production possibilities for two countries,producing either food or clothing,are shown in the above figure.The United States has a comparative advantage in producing

-The above figure depicts the Edgeworth box for two individuals,Al and Bruce.If the endowment is at point a,and trade is possible,which of the following points are possible equilibria?

The effects of a price change are always understated by a partial-equilibrium analysis when compared to a general-equilibrium analysis.

-Suppose the production possibilities for two countries,producing either food or clothing,are shown in the above figure.They can each produce any linear combination as well.Measuring food on the horizontal axis,the joint production possibility frontier has a kink because