Answer appropriately

QUESTION 15 Which of the following best explains the view that nothing matters except that individuals have met a basic level of need for goods, such as housing or medical care, and that once they have met this basic level, income distribution is irrelevant? O a. utilitarian social welfare function O b. Rawlsian social welfare function O c. commodity egalitarianism O d. First Fundamental Theorem of Welfare Economics QUESTION 16 The First Fundamental Theorem of Welfare Economics states that: O a social efficiency can be achieved if and only if government intervenes in the economy. O b. the competitive equilibrium, where supply equals demand, maximizes social efficiency. O c. social efficiency cannot be achieved in any competitive equilibrium. O d. the competitive equilibrium, where supply equals demand, can always be achieved through government intervention. QUESTION 17 Consumer surplus is greater than producer surplus when the demand curve is producer surplus is greater than consumer surplus when the demand curve is O a. elastic; elastic O b. inelastic; elastic O c. inelastic; inelastic O d. perfectly elastic; perfectly inelastic QUESTION 18 Suppose Jon likes to eat both pizza and hamburgers. As Jon consumes less pizza and holds steady his consumption of hamburgers, the marginal utility of a piece of pizza , and the marginal utility of a hamburger O a. increases; is unchanged O b. decreases; is unchanged O c. decreases; decreases O d. increases; increasesQuestion 3 Consider an exchange economy with two individuals who have initial endowments of two goods, x and y, W1 = (ti, 2), W3 = (2, 4), where the subscripts arc the individuals. These individuals have the following preferences, U1 = 2:1 at in, Hz = 12'; a: y'f'. 3. Find the set of all Pareto optimal outcomes1 the contract curve. b. Draw the Edgeworth box with the initial endowments and the contract curve. Are the initial endowments on the contract curve? :1. How would you solve for the core? (:1. State the rst fundamental theorem of welfare economies. Why is it important? What are its limitations (not the limitations from part (d))? e. Describe a scenario in which the rst fundamental welfare theorem would not apply. GDP and the CPI - End of Chapter Problems 1. The accompanying circular-flow diagram represents the Trom - 110 economy of Macronia. Super profit a. What is the value of GDP in Macronia? Financial GDP = $ 690 b. What is the value of net exports? Net exports = $ 30 c. What is the value of disposable income? Disposable income = $ 510 d. Does the total flow of money out of households the sum of taxes paid, consumer spending, and private savings equal the total flow of money into households? Yes O No