Study Guide to accompany Microeconomics
10th Edition
ISBN: 9781259972621
Author: David C Colander
Publisher: McGraw-Hill Education
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Question
Chapter 23, Problem 1QE
To determine
Explain the Pareto optimal policy.
Expert Solution & Answer
Explanation of Solution
The Pareto optimal policy is the policy that benefits some people and does not hurt anyone. In real life, it is not that much possible like a Pareto optimal policy. Even though, if one could see other social values as being inviolate. For the most part, these problems are theoretical, since no such legislation may actually exist. All the real-world polices make some people better off and some people worse off.
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Chapter 23 Solutions
Study Guide to accompany Microeconomics
Ch. 23.1 - Prob. 1QCh. 23.1 - Prob. 2QCh. 23.1 - Prob. 3QCh. 23.1 - Prob. 4QCh. 23.1 - Prob. 5QCh. 23.1 - Prob. 6QCh. 23.1 - Prob. 7QCh. 23.1 - Prob. 8QCh. 23.1 - Prob. 9QCh. 23.1 - Prob. 10Q
Ch. 23 - Prob. 1QECh. 23 - Prob. 2QECh. 23 - Prob. 3QECh. 23 - Prob. 4QECh. 23 - Prob. 5QECh. 23 - Prob. 6QECh. 23 - Prob. 7QECh. 23 - Prob. 8QECh. 23 - Prob. 9QECh. 23 - Prob. 10QECh. 23 - Prob. 11QECh. 23 - Prob. 12QECh. 23 - Prob. 13QECh. 23 - Prob. 14QECh. 23 - Prob. 15QECh. 23 - Prob. 1QAPCh. 23 - Prob. 2QAPCh. 23 - Prob. 3QAPCh. 23 - Prob. 4QAPCh. 23 - Prob. 5QAPCh. 23 - Prob. 1IPCh. 23 - Prob. 2IPCh. 23 - Prob. 3IPCh. 23 - Prob. 4IPCh. 23 - Prob. 5IPCh. 23 - Prob. 6IPCh. 23 - Prob. 7IPCh. 23 - Prob. 8IPCh. 23 - Prob. 9IPCh. 23 - Prob. 10IPCh. 23 - Prob. 11IP
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- Is it realistic to think that we account for rational behaviour in every situation?arrow_forwardConsidering the given possible uses of candy, which of the four choices could be Pareto Efficient (assuming candy is a “good”)? Among the four choices, which policy would yield the highest value according to a “Rawlsian” welfare function? (assuming that sweet/candy is a “good”) Explain. CHOICE 1: Every student gets one candy. The remaining candies are thrown in the bin. CHOICE 2: One student gets all the candies CHOICE 3: Every student gets two candies except for one student, who gets no candy; the remaining go in the bin. CHOICE 4: All the candies go in the binarrow_forwardWhat good is economic theory if it cannot predict the behavior of a specific individual?arrow_forward
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