The Second Welfare Theorem

question 43

Multiple Choice

The second welfare theorem:

• A)states that a Pareto- optimal allocation can be reached via a competitive equilibrium.
• B)does not allow for redistribution of income.
• C)is a corollary of the first welfare theorem.
• D)implies that not all Pareto- optimal allocations can be attained.

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Definitions:

Prolonged Stimulation

Continuous or extended exposure to a stimulus over a considerable period of time.

Neurotransmitter

Chemical messengers that transmit signals across a chemical synapse, from one neuron (nerve cell) to another 'target' neuron, muscle cell, or gland cell.

Amplitude

Amplitude refers to the magnitude or strength of a fluctuating signal, such as sound, light, or electrical signal, often measured from its baseline to its peak.

Brightness

The perception of how luminous an object appears, measured in lumens or subjective visual assessment.