The First Theorem of Welfare Economics states that:
a. only Walrasian equilibria can be Pareto optimal.
b. all Walrasian equilibria are Pareto optimal.
c. a Walrasian equilibrium price vector can always be found.
d. some Walrasian equilibria may be unfair.
b
You might also like to view...
The combining of First Union National Bank and The National Bank of Memphis is an example of
A) a vertical merger. B) a horizontal merger. C) a downstream formation. D) a conglomerate merger.
Describe the three stages of economic analysis.
What will be an ideal response?
Suppose a bank has $5,000,000 in deposits, a required reserve ratio of 20 percent, and total reserves of $1,000,000. Then the bank has excess reserves of
A. $1,000,000. B. $0. C. $2,000,000. D. $500,000.
If it becomes less expensive for firms to hold excess capital and labor, the multiplier will
A. remain unchanged. B. decrease. C. increase. D. either increase or decrease depending on the value of the MPC.