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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Country A and Country B initially have the same real GDP per capita. Country A experiences no economic growth, while Country B grows at a sustained rate of 5 percent. In 14 years, Country A's GDP will be approximately ____ that of Country B
a. one-fourth b. one-half c. double d. triple
Over the past fifty years, the proportion of women in the workforce has ______.
a. increased dramatically b. increased slightly c. remained steady d. decreased slightly
The market system:
A. produces considerable inefficiency in the use of scarce resources. B. effectively harnesses the incentives of workers and entrepreneurs. C. is not consistent with freedom of choice in the long run. D. has slowly lost ground to emerging command systems.
Which statement about oligopoly is false?
A. Monopolistic firms recognize their interdependence B. Prices in oligopoly are predicted to fluctuate widely and frequently C. A few firms play an important role in the sale of a product D. One firm's behavior is a function of what its rivals do