Multiple Choice
The first welfare theorem
A) Tells us that, in a general equilibrium with imperfect competition, the allocation of resources is Pareto efficient
B) Clarifies how the "invisible hand" of the market guides people toward privatly desirable choices
C) Tells us that a general equilibrium with perfect competition is not Pareto efficient
D) Tells us that, in a general equilibrium with perfect competition, the allocation of resources is Pareto efficient
Correct Answer:
Verified
Correct Answer:
Verified
Q32: The principle of equal opportunity is an
Q33: Input efficiency<br>A) Means that holding constant the
Q34: In an exchange economy<br>A) People produce goods,
Q35: A point along the production possibility frontier
Q36: Utilitarianism<br>A) Was favored by Jeremy Bentham<br>B) Was
Q38: Suppose milk and cereal are compliments and
Q39: The social welfare function<br>A) Summarizes judgments about
Q40: Suppose milk and cereal are compliments and
Q41: A point on the utility possibility frontier
Q42: The marginal rate of transformation from good