Exchange Efficiency, Input Efficiency, and Substitution Efficiency Are Satisfied When

Multiple Choice

Exchange efficiency, input efficiency, and substitution efficiency are satisfied when ______________________. This result is known as ______________.

A) free trade occurs; Walras Law.
B) all markets are at a general competitive equilibrium; Walras Law.
C) all markets are at a general competitive equilibrium; the First Fundamental Theorem of Welfare economics.
D) resources are scarce; the First Fundamental Theorem of Welfare economics.