Multiple Choice
The second fundamental theorem of welfare economics states that
A) under certain conditions, a competitive equilibrium is Pareto optimal.
B) a competitive equilibrium is always Pareto optimal.
C) under certain conditions, a Pareto optimum is a competitive equilibrium.
D) a Pareto optimum is always a competitive equilibrium.
E) a Pareto optimum does not have to be a competitive equilibrium.
Correct Answer:
Verified
Correct Answer:
Verified
Q2: A competitive equilibrium may fail to be
Q3: Changes in government spending are not likely
Q4: Immunization from communicable diseases generate<br>A) overproduction.<br>B) a
Q5: The production possibilities frontier in the one-period
Q6: In a one-period model,government is likely to
Q7: The marginal rate of transformation is<br>A) the
Q8: Changes in government spending are not likely
Q9: The Laffer Curve illustrates the relationship between<br>A)
Q10: In an economic model,an endogenous variable is<br>A)
Q11: In response to an increase in total