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.
Correct Answer:
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Q1: Given an initial allocation of resources that
Q2: If one is on the contract curve
A)the
Q4: A Pareto preferred transaction is one where
A)the
Q5: If one is inside the production possibilities
Q6: Given an initial endowment of factor inputs,
A)there
Q7: In the Edgeworth box shown below,
Q8: The rate at which one input can
Q9: In an economy, which of the following
Q10: In competitive equilibrium
A)the MRS of all consumers
Q11: In the Edgeworth box diagram, if the
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