Which of the Following Statements Is TRUE

question 79

Multiple Choice

Which of the following statements is TRUE?

• A)A government policy that eliminates a market failure, but only some people gain while others are kept the same, is not a Pareto improvement.
• B)A government policy that eliminates a market failure, but only some people gain while others are kept the same, is a Pareto improvement.
• C)A government policy that eliminates a market failure and some people gain and some lose only a little, is a Pareto improvement.
• D)A government policy that generates a Pareto improvement eliminates all deadweight loss.

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Definitions:

Mass

The quantity of matter that an object contains, measured in kilograms or grams.

Density

A physical property defined as the mass of a substance per unit volume.

Volume

How much room an object or matter fills.

Mass

A quantification of the matter contained within an object, usually expressed in kilograms or grams.