The Statement: "If Everyone Trades in the Competitive Marketplace, All

question 21

Multiple Choice

The statement: "If everyone trades in the competitive marketplace, all mutually beneficial trades will be completed, and the resulting equilibrium allocation of resources will be economically efficient." is formally known as:

• A) the law of supply and demand.
• B) the first theorem of supply and demand.
• C) the first theorem of welfare economics.
• D) the first theorem of efficiency in economics.