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According to the Second Welfare Theorem

Question 3

Multiple Choice

According to the second welfare theorem


A) when an allocation is efficient it also achieves equity.
B) the issues of equity and efficiency are separate in that the system can be on the contract curve but might not be considered equitable.
C) equity cannot be analyzed in the Edgeworth box model because it shows only possible trades toward efficiency.
D) the welfare of individuals is not based on material goods.

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