Examlex
Match each numbered item in the accompanying figure with its button name.
-Alternate Row Color
Initial Endowment
The initial allocation of resources, goods, or wealth that individuals or firms possess before engaging in exchanges or production.
Pareto Efficient Allocations
refers to an economic situation where no individual can be made better off without making someone else worse off.
First Theorem of Welfare Economics
A principle stating that, under perfect competition and with no externalities, the allocation of resources where supply equals demand leads to a Pareto efficient outcome.
Competitive Equilibrium
A state in a market where supply equals demand, with price acting as the balancing factor, and all economic agents are optimizing their outcomes.
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