"The First Welfare Theorem holds only if all consumers and firms are price takers. If some individuals or firms are price makers , then the allocation of resources will generally be inefficient."

“It may be worthwhile to spend a few million dollars to determine the efficacy of program that would involve spending billions of dollars.”

“Peoples views on how the government should conduct its financial operations are heavily influenced by their political philosophies.”

“The mere ability to postpone taxes may not seem all that important, but its consequences are enormous.”

“Dioxin is the outcome of the operations of markets. Does this mean that having dioxin in the environment is efficient?”

“Welfare" in the United States is a patchwork of more than 80 programs that provide benefits primarily to low-income individuals. These programs are means tested - only individuals whose financial resources fall below a certain level can receive benefits.”

“Government is essentially a big computer that elicits from citizens their preferences and uses this information to produce social decisions.”