The Second Welfare Theorem States That

question 96

Multiple Choice

The Second Welfare Theorem states that:

• A) perfectly competitive markets, if Pareto-efficient, are equitable.
• B) Pareto efficiency implies that input allocations are socially desirable.
• C) Pareto efficiency cannot occur if resources are not equitably allocated.
• D) any Pareto-efficient allocation can be achieved in a perfectly competitive market by adjusting the initial allocations of goods.

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Definitions:

Spanish Franciscan Friars

Members of the Franciscan religious order from Spain who played a significant role in the Christianization of indigenous peoples in the Americas during the colonial period.

Pueblo Indians

Indigenous people of the Southwestern United States, known for their unique adobe dwellings and community-centric societies.

Acoma

A Native American pueblo located in New Mexico, known for its rich history and as being one of the oldest continuously inhabited communities in the United States.

New Mexico

A southwestern state in the United States, known for its diverse culture, historic sites, and landscapes, encompassing deserts, forests, and mountains.