The first fundamental theorem of welfare economics states that
A) under certain conditions, a competitive equilibrium is Pareto optimal.
B) a competitive equilibrium is always Pareto optimal.
C) under certain conditions, a Pareto optimum is a competitive equilibrium.
D) a Pareto optimum is always a competitive equilibrium.
E) a Pareto optimum does not have to be a competitive equilibrium.
Correct Answer:
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Q21: The second fundamental theorem of welfare economics
Q22: An example of a negative externality is
A)
Q23: A competitive equilibrium has the following property:
A)
Q24: The marginal rate of transformation is
A) the
Q25: The real wage is determined by
A) the
Q27: Relative to the social optimum,monopoly power directly
Q28: An externality is any activity for which
Q29: Immunization from communicable diseases generate
A) overproduction.
B) a
Q30: The concept of Pareto optimality is a
A)
Q31: A Pareto optimum
A) can be found in
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