To the best of your knowledge which one is correct Question 2Theft redistributes resources in a way that violates Pareto optimality. The account of efficiencyoffered by Pareto says that a given policy, action, or allocation of resources should have which effectamong the following?eisteisteImprove the welfare of at least some.Improve the aggregated welfare of the group.None of these answers are correct.Improve the welfare of at least some without diminishing the welfare of anyone. A 19th Century proponent of railroad interests, Richard Olney, once said about a Federal regulatorycommission set up with the proclaimed goal of ending monopolistic activity in the railroad industry:ste" The commission. is or can be made, of great use to the railroads. It satisfies the popular clamorfor a government supervision of the railroads, at the same time that supervision is almost entirelynominal. Further, the older such a commission gets to be, the more inclined it will be found to takethe business and railroad view of things. The part of wisdom is not to destroy the commission, butto utilize it." This example best illustrates which phenomenon?Tax credits and subsidiesChartered monopolyRegulatory captureBailoutsQuestion 4What is the mistake in the following argument?1. In a range of circumstances, a market constrained by regulatory policies administered by morallyand informationally perfect people would produce better outcomes than that market free of anyregulatory policies.2. In those circumstances, actually implementing those regulatory policies administered by morallyand informationally perfect people would produce better outcomes than that market free of anyregulatory policies.3. Therefore, we should implement the regulatory policies.It neglects Gordon Gekko's proof that greed is always and everywhere good.None of these answers are correct.It neglects to account for the outcomes of the regulatory policies when administered by morally andinformationally imperfect people (that is, real people), and so commits the unicorn fallacy.Premise 1. is always false.

Pareto optimality: It refers to that situation in which the people who are consuming different items…

Theft redistributes resources in a way that violates Pareto optimality. The account of efficiency offered by Pareto says that a given policy, action, or allocation of resources should have which effect among the following?

Theft redistributes resources in a way that violates Pareto optimality. The account of efficiency offered by Pareto says that a given policy, action, or allocation of resources should have which effect among the following?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter3: Scarcity, Trade-offs, And Production Possibilities

Section: Chapter Questions

Problem 13P

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