If Everyone's Utility Is Given Equal Weight and a Change

question 84

Multiple Choice

If everyone's utility is given equal weight and a change in resource allocation results in one person's gain exceeding another person's loss,we can say that the new allocation

• A) is Pareto superior to the original one.
• B) increases social welfare.
• C) decreases social welfare.
• D) is efficient.

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Definitions:

Lowball Technique

A persuasion tactic where an initially favorable offer is made, then terms are unfavorably changed, relying on commitment to secure agreement.

Highball Technique

A persuasive strategy where an initial, excessively high request is made, knowing it will likely be rejected, in order to make a subsequent, smaller request seem more reasonable.

Proposition

A statement or assertion that expresses a judgment or opinion.

Fundamental Attribution Error

The tendency to overemphasize personal characteristics and underestimate situational factors when explaining other people's behavior.