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:

Unpaid Seller

A vendor who has provided goods or services but has not yet received payment from the buyer.

Unpaid Lien

A legal claim or right against a property due to unpaid debts, which must be paid off when the property is sold.

Fitness and Quality

Essential criteria that goods or services must meet, ensuring they are suitable and of a high standard for consumers.

Sale of Goods Act

Legislation governing the sale and purchase of goods, setting out legal rights and obligations of buyers and sellers.