Any _________________ allocation of goods and inputs can be attained as a general competitive equilibrium through a judicious ___________ of the economy's___________________. This result is known as_____________
A)arbitrary, allocation, resources; Walras Law.
B)equitable, allocation, goods; The First Fundamental Theorem of Welfare Economics
C)efficient, allocation, scarce supplies of resources; the First Fundamental Theorem of Welfare economics.
D)efficient, allocation, scarce supplies of resources; the Second Fundamental Theorem of Welfare economics.

Question

Quizplus · Accepted Answer

The question is referring to the concept of general competitive equilibrium, which involves efficiently allocating scarce resources to achieve an optimal outcome. The result that any efficient allocation of goods and inputs can be attained through a proper adjustment of the economy's resources is known as the Second Fundamental Theorem of Welfare Economics. Therefore, the best choice is D. The question is talking about the general competitive equilibrium where goods and inputs are efficiently allocated based on the scarce supplies of resources. This concept is known as the First Fundamental Theorem of Welfare Economics. Therefore, the best choice is D, which matches the efficient allocation and the first theorem.

Any _________________ Allocation of Goods and Inputs Can Be Attained