Each of the following is a challenge that society's would face in trying to use the second welfare theorem to achieve equity without sacrificing efficiency EXCEPT:
A. endowments aren't always easily observable.
B. wealth isn't an endowment.
C. lump-sum transfers distort choices.
D. transfers based on wealth aren't lump-sum transfers.
C. lump-sum transfers distort choices.
Economics
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The perfectly competitive firm cannot influence the market price because
A) it has market power. B) its production is too small to affect the market. C) a few buyers have control over the market price. D) its costs are too high.
Economics
When a nation's inflation rate is low, prices tend to
A. increase dramatically. B. remain stable. C. fluctuate daily. D. reduce currency values
Economics