Any consequentialist approach to normative economics that uses standard indifference maps as social indifference maps (over utilities or consumption) will choose efficient outcomes in the first-best case.
Answer the following statement true (T) or false (F)
True
Rationale: The utility (or consumption) possibility frontier is like a budget -- and, in the first best case, contains all efficient outcomes. Any social indifference map will choose from that frontier -- and will thus choose an efficient outcome.
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What will be an ideal response?
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A) Friedman and Phelps. B) Hicks and Hansen. C) Modigliani and Friedman. D) Lucas and Sargent.