Multiple Choice
The first theorem of welfare economics states that
A) government action is never Pareto efficient.
B) Pareto efficiency is achieved in competitive markets.
C) Pareto efficiency can be achieved only in competitive markets.
D) Pareto efficiency is unattainable.
E) government intervention is needed to achieve Pareto efficiency.
Correct Answer:
Verified
Correct Answer:
Verified
Q117: What is the first theorem of welfare
Q118: Exhibit 7-11 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6906/.jpg" alt="Exhibit 7-11
Q119: Exhibit 7-1 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6906/.jpg" alt="Exhibit 7-1
Q120: Market competition leads to economic inefficiency.
Q121: In a market, buyers and sellers are
Q123: A price floor that is higher than
Q124: Exhibit 7-2 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6906/.jpg" alt="Exhibit 7-2
Q125: Deadweight loss is the amount of benefits
Q126: The function of price in a market
Q127: Besides processing information, an economic system must