The Second Theorem of Welfare Economics states that:
a. all Walrasian equilibria are also social welfare maxima.
b. social welfare maxima will usually be Pareto inefficient.
c. any social welfare maximum can be a Walrasian equilibrium with suitable transfers of initial endowments.
d. all Pareto optimal allocations are social welfare maxima.
c
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The monetary base is $1,000 billion and the money multiplier is 5.5. What is the size of the money supply?
What will be an ideal response?
A reaction function is
A) companies colluding in order to make higher than competitive rates of return. B) the manner in which one oligopolist reacts to a change in price made by another oligopolist in the industry. C) a game in which firms will not negotiate in any way. D) when plans made by firms are known as game strategies.