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.
Question 2
If the costs of labor and capital increase in the same proportion, the isocost line will
A) stay the same.
B) shift outward in a parallel fashion.
C) rotate inward around the point where only capital is employed in production.
D) shift inward in a parallel fashion.
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