Assume Some Gain and Some Lose as the Result of a Change

question 184

Multiple Choice

Assume some gain and some lose as the result of a change. If we can demonstrate the value of the gains are less than the value of the losses, then we say the change is

• A) potentially efficient.
• B) inefficient.
• C) unequivocally Pareto optimal.
• D) technically efficient.

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Definitions:

Market Equilibrium

A situation in which market supply equals market demand, so there is no incentive for price changes unless external conditions change.

Great Depression

A severe worldwide economic downturn during the 1930s, marked by prolonged unemployment, deflation, and significant declines in economic activity.

Economic Principle

Fundamental concepts that underpin the study and practice of economics, such as supply and demand or the cost-benefit analysis.

Productive Capacity

The maximum output a firm or economy can produce with its current level of resources and technology.