Exchange Efficiency, Input Efficiency, and Substitution Efficiency Are Satisfied When

question 22

Multiple Choice

Exchange efficiency, input efficiency, and substitution efficiency are satisfied when ______________________. This result is known as ______________.

• A)free trade occurs; Walras Law.
• B)all markets are at a general competitive equilibrium; Walras Law.
• C)all markets are at a general competitive equilibrium; the First Fundamental Theorem of Welfare economics.
• D)resources are scarce; the First Fundamental Theorem of Welfare economics.