The second 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.
Correct Answer:
Verified
Q22: The PPF determines
A) all possible outcomes for
Q23: PPF is the
A) price parity formula.
B) possible
Q24: A competitive equilibrium is Pareto optimal if
Q25: The rate at which one good can
Q26: The concept of Pareto optimality is a
A)
Q28: A competitive equilibrium has all of the
Q29: The presence of a distorting tax on
Q30: A Pareto optimum is a point that
A)
Q31: A competitive equilibrium
A) is always economically efficient.
B)
Q32: Relative to the social optimum,monopoly power tends
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