Which of the following is not an example of market

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Principles of Macroeconomics
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Chapter 20 / Exercise 08
Principles of Macroeconomics
Mankiw
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4. Which of the following is NOT an example of market failure? A) De Beers controls the diamond market. B) Only unhealthy people want to join health insurance. C) Heavy industry firms earn lots of profit while polluting the air. D) Everybody knows the market price of a good.
5. Which is NOT a basic condition for Pareto efficiency?
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Principles of Macroeconomics
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Chapter 20 / Exercise 08
Principles of Macroeconomics
Mankiw
Expert Verified
6. Which of the following occurrences is NEVER associated with a Pareto improvement?
7. A social indifference curve shows
8. There is a basic trade-off between efficiency and equity because A) income redistribution tends to reduce incentives for efficient behavior. B) people who are efficient dislike equity. C) Pareto improvements can only be made by sacrificing efficiency. D) the economy can only achieve a Pareto efficient allocation by starting from an unequal allocation of resources.

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