The First Theorem of Welfare Economics states that:
a. only Walrasian equilibria can be Pareto optimal.
b. all Walrasian equilibria are Pareto optimal.
c. a Walrasian equilibrium price vector can always be found.
d. some Walrasian equilibria may be unfair.
b
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At Revolution Doughnuts in Fort Collins, Colorado, a cup of coffee or a doughnut is $1. Suppose Hannah loves going to Revolution Doughnuts
Currently, her marginal utility per dollar from doughnuts is 14 and her marginal utility per dollar from coffee is 10. Is Hannah maximizing her total utility? A) No, she needs to buy more doughnuts and less coffee. B) No, she needs to buy more coffee and fewer doughnuts. C) Yes, she is maximizing utility. D) No, she needs to buy fewer doughnuts and less coffee.
Which of the following is an accurate list, in order, of the steps of the scientific process?
a. define variables; state assumptions; form a hypothesis; test b. state assumptions; define variables; form a hypothesis; test c. identify variables; state assumptions; test; form a hypothesis d. identify variables; form "other things equal" assumptions; form behavioral assumptions; test e. form "other things equal" assumptions; form behavioral assumptions; form hypothesis; test