According to the Second Fundamental Theorem of Welfare Economics,
A)society can attain any Pareto efficient allocation of resources.
B)production must be twice as large as consumption.
C)equity cannot be achieved without inhibiting efficiency.
D)not all points along the utility possibilities curve are attainable.

Question

Quizplus · Accepted Answer

The Second Fundamental Theorem of Welfare Economics states that any Pareto efficient allocation can be achieved by a competitive market equilibrium, given appropriate redistribution of initial endowments.