The second fundamental theorem of welfare economics states that
A) a Pareto optimum is always a competitive equilibrium.
B) under certain conditions, a competitive equilibrium is Pareto-optimal.
C) under certain conditions, a Pareto optimum is a competitive equilibrium.
D) a competitive equilibrium is always Pareto-optimal.
E) a Pareto optimum does not have to be a competitive equilibrium.
Correct Answer:
Verified
Q43: Fiscal policy refers to a government's choices
Q44: In the model with Keynesian sticky wages
Q45: In the model with Keynesian sticky wages
Q46: An increase in total factor productivity shifts
Q47: Changes in government spending are NOT likely
Q49: The marginal rate of transformation is equal
Q50: The production possibilities frontier in the one-period
Q51: The rate at which one good can
Q52: Changes in government spending are NOT likely
Q53: An example of a public good is
A)transfer
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents