Multiple Choice
The Second Theorem of Welfare Economics states that:
A) all Walrasian equilibria are also social welfare maxima.
B) social welfare maxima will usually be Pareto inefficient.
C) any social welfare maximum can be a Walrasian equilibrium with suitable transfers of initial endowments.
D) all Pareto optimal allocations are social welfare maxima.
Correct Answer:
Verified
Correct Answer:
Verified
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