Use the Following Statements to Answer This Question

question 38

Multiple Choice

Use the following statements to answer this question:
I. The first theorem of welfare economics refers to efficient allocation of goods across groups of consumers, and it does not consider the problem of efficient production of these goods.
II. The only way to achieve an efficient allocation of goods is to use competitive markets.

• A) I and II are true.
• B) I is true and II is false
• C) II is true and I is false.
• D) I and II are true

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Definitions:

Preexisting Beliefs

Convictions or opinions held before being exposed to new information or experiences.

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Social Cognitive Perspective

A theoretical framework that emphasizes the role of cognitive processes in understanding and responding to the social world.

Mental Processes

Internal cognitive operations that include thinking, remembering, learning, and using language.