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A. Wealth redistribution should be minimized in order to avoid a deleterious impact on
B. Some degree of wealth redistribution is acceptable but wealth creation is ultimately
C. Wealth redistribution choices should be based on a clear understanding of the
deleterious impact on wealth creation.
D. Both B and C.
7. An economy exhibits market failure if
A. the equilibrium of that economy is not Pareto efficient.
B. the equilibrium of that economy is unfair.
C. Both A and B.
D. None of the above.
8. Which of the following is not a class of market failure?
A. Externalities and public goods.
B. Asymmetric information among buyers and sellers.
C. Income inequality.
D. Market power. 33 Answer Key 1.
C 34 Economics 113
Introduction to Economics for Policy Analysis
1. “The only role for economics in redistribution policy is to bring attention to the
potential conflict between wealth redistribution and wealth creation”. True or f...
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This document was uploaded on 03/03/2014.
- Spring '14