Absent any violations of the first welfare theorem, the competitive equilibrium is efficient.
Answer the following statement true (T) or false (F)
True
Rationale: That is in fact the first welfare theorem -- absent any of the distortions from violations of the underlying conditions, markets are efficient.
Economics
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According to the saving and investment equation, if net foreign investment rises by $60 million,
A) domestic investment will rise by $60 million. B) private saving will fall by $60 million. C) national saving will fall by $60 million. D) national saving will increase by $60 million.
Economics
Criteria for an optimum currency area include all the following except
A) fiscal transfers. B) similar business cycle patterns. C) extensive trade with each other. D) a common language.
Economics