The Second Welfare Theorem States That

Multiple Choice

The Second Welfare Theorem states that:

A) perfectly competitive markets, if Pareto-efficient, are equitable.
B) Pareto efficiency implies that input allocations are socially desirable.
C) Pareto efficiency cannot occur if resources are not equitably allocated.
D) any Pareto-efficient allocation can be achieved in a perfectly competitive market by adjusting the initial allocations of goods.