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:

Great Recession

A severe global economic downturn that began in 2007 and lasted until the early 2010s, marked by significant declines in economic activity and employment.

Government Action

Government action refers to any undertaking, decision, or activity carried out by government authorities or agencies in pursuit of public policy objectives.

Equal Worth

The principle recognizing that all human beings have intrinsic value, deserving of the same respect and rights.

Constitutional Convention

A gathering for the purpose of writing or revising a constitution, notably the convention in Philadelphia in 1787 which resulted in the drafting of the U.S. Constitution.