The second welfare theorem:
A) states that a Pareto- optimal allocation can be reached via a competitive equilibrium.
B) does not allow for redistribution of income.
C) is a corollary of the first welfare theorem.
D) implies that not all Pareto- optimal allocations can be attained.
Correct Answer:
Verified
Q1: Efficiency in production requires that:
A)MRS is identical
Q2: Which of the following conditions is not
Q4: The aggregate demand in an Edgeworth box
Q5: The second welfare theorem states that any
Q6: Which of the following assumptions does not
Q7: The necessary conditions for an efficient outcome
Q8: Which of the following conditions must be
Q9: A per- unit tax placed on the
Q10: If, in a general equilibrium framework, MRT
Q11: All points on the production possibility frontier
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