The statement: "If everyone trades in the competitive marketplace, all mutually beneficial trades will be completed, and the resulting equilibrium allocation of resources will be economically efficient." is formally known as:
A) the law of supply and demand.
B) the first theorem of supply and demand.
C) the first theorem of welfare economics.
D) the first theorem of efficiency in economics.
C
You might also like to view...
The goal of a commercial bank is to
A) establish good regulations for commercial activities. B) accept only deposits made in money. C) minimize its taxes paid to state governments. D) maximize its stockholders' wealth. E) make only safe, no-risk loans.
The figure above shows a perfectly competitive firm. When the firm maximizes its profit, its economic profit
A) is more than $300. B) is $300. C) is less than $300. D) The premise of the question is wrong because the firm is incurring an economic loss.
Residential construction did not return to its 1926 high levels until 1949
Indicate whether the statement is true or false
How does an import quota differ from an equivalent tariff?