Explain the logic behind the First Theorem of Welfare Economics
What will be an ideal response?
A competitive market allows all the voluntary trades desired by people who face the same price. No additional voluntary trades can occur so there is no way to make someone better off. Thus, a competitive equilibrium is efficient.
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Decisions to reduce the money supply are made by ________ and are an example of ________ policy.
A. the President; monetary B. the Federal Reserve; fiscal C. Congress; monetary D. the Federal Reserve; monetary
A production function relates
a. the level of output to the level of technology. b. the price level to the level of aggregate output. c. aggregate output to the level of inputs and technology. d. aggregate demand to aggregate supply.
One of the key factors in the economic success of South Korea was
a. an increase in years of schooling. b. a reduction in the amount of imports. c. the creation of new technology. d. all of the above.
In regression analysis, the standard errors should not always be included along with the estimated coefficients. ?
Answer the following statement true (T) or false (F)