The Second Welfare Theorem States That Any Pareto- Optimal Allocation

question 81

Multiple Choice

The second welfare theorem states that any Pareto- optimal allocation:

• A)the initial endowment is not relevant for the equilibrium.
• B)is equally desirable for the economic agents.
• C)can always be attained as a competitive equilibrium.
• D)can be attained as a competitive equilibrium under some restrictive conditions.

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Definitions:

Broca's Area

A region in the frontal lobe of the dominant hemisphere of the brain with functions linked to speech production.

Frontal Area

The frontal area, often referring to the frontal lobes of the brain, plays a critical role in decision making, personality expression, and moderating social behavior.

Occipital Lobes

The regions of the brain located at the back of the head, responsible for processing visual information from the eyes.

Prefrontal Cortex

The part of the frontal lobes of the brain involved in decision making, problem-solving, control of purposeful behaviors, consciousness, and emotions.