The second welfare theorem says that, regardless of how we redistribute endowments in an economy, we still get the same competitive equilibrium if markets are permitted to operate.
Answer the following statement true (T) or false (F)
False
Rationale: The second welfare theorem says that any efficient allocation can become a competitive equilibrium if appropriate redistributions of endowments can be made.
You might also like to view...
Which of the following is a public good created by the market?
a. Broadcast radio b. Tornado sirens c. Street lights d. Cable television
Which of the following goods is most likely to be associated with monopolistic competition?
a. Gasoline b. Milk c. Cookies d. Wheat
Based on the table for the federal tax burden, the lowest 20% of earners pays about what percent of total federal taxes?
a. 1.0
b. 4.2
c. 4.4
d. 52.1
In the above figure, the second ton of wheat would be produced even though the producer surplus on it is zero if the price per ton of wheat was
A) $25. B) $50. C) $75. D) $100.