The fact that any Pareto-efficient equilibrium can be achieved through competition by adjusting endowments is called
A) the Second Welfare Theorem.
B) the First Welfare Theorem.
C) the Third Welfare Theorem.
D) That is not possible.
A
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Explicit costs include
a. monitoring expenses incurred by the government b. enforcement costs paid by the public sector c. compliance costs incurred by all economic sectors d. all of the above e. none of the above
According to aggregate demand and supply analysis, the rising oil prices coupled with the global financial crisis in 2007-2008 caused the unemployment rate to ________ and the level of real aggregate output to ________
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
An increase in the price of a substitute good will shift the demand curve for a good to the right
a. True b. False Indicate whether the statement is true or false
The long run can be distinguished from the short run because in the long run
a) an equilibrium is reached between aggregate supply and aggregate demand b) resources are no longer scarce c) firms produce at capacity d) the inflation rate is zero e) technological advances come to an end