Which of the following questions is not answered by general equilibrium analysis?
A) Are equilibria in different markets compatible with one another?
B) Can all markets simultaneously be in equilibrium?
C) How will a change in one market affect another market?
D) What outcome is most desirable for the whole society?

Question

Quizplus · Accepted Answer

General equilibrium analysis focuses on how equilibria in different markets interact and affect each other, ensuring that all markets can be in equilibrium simultaneously and examining the impact of changes in one market on others. It does not address normative questions about what outcomes are most desirable for society, which are typically the domain of welfare economics or political philosophy.

Which of the Following Questions Is Not Answered by General