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Unformatted text preview: d because everyone can, if they want, harvest from the
stock without constraint--the resources is available to the public for free.
80. Goods are redistributed between George and Fred such that after the redistribution Fred
is better off and George is worse off. Given this, we know that before the redistribution,
the distribution of goods between Fred and George was efficient.
The answer to the
first one is A
81. I have a ton of old newspapers in my home office. I like them there; Sally, my wife,
because my wife will does not. The current situation is efficient because? Choose the best possible answer.
pay more removal A) Sally's WTP for their removal is less than my WTA their removal.
B) Sally's WTP for their removal is more than my WTP to keep them around.
than I need to be
C) It is not right for me to clutter up our home with yellowing newspapers.
paid to accept their
D) Sally's WTP for their removal is more than my WTA their removal.
removal, so removal
is a potential Pareto
Improvement (the 2. A plastics manufacturing plant emits pol...
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This document was uploaded on 02/18/2014 for the course ECON 2010 at Colorado.
- Fall '07