True/False
The second welfare theorem of economics states that if preferences are convex, then any Pareto optimal allocation could be achieved as a competitive equilibrium after some reallocation of initial endowments.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q38: From Walras's law it follows that in
Q39: Kens utility function is U(Q K, W
Q40: A competitive equilibrium allocation must be a
Q41: In a competitive pure exchange economy, if
Q42: Xavier and Yvette are the only two
Q44: Jack Spratt's utility function is U(F, L)=
Q45: Astrid's utility function is U(H<sub>A</sub>, C<sub>A</sub>)= H<sub>A</sub>C<sub>A</sub>.Birger's
Q46: An economy has two people, Charlie and
Q47: Jack Spratt's utility function is U(F, L)=
Q48: Mutt's utility function is U(m, j)= max{3m,