The Significance of the First Fundamental Theorem of Welfare Economics

question 48

Multiple Choice

The significance of the First Fundamental Theorem of Welfare Economics is that:

• A)even if the economy is in competitive general equilibrium, significant intervention will be required to bring about economic efficiency.
• B)there is a possibility that an economy could simultaneously attain an efficient allocation and one in which the resulting distribution of utility is in some sense equitable.
• C)Even though households and firms behave independently and each pursues its own self-interest, the resulting equilibrium is efficient in the sense that it exploits all possible mutually beneficial gains from trade or from reallocation of inputs.
• D)resources are scarce in the economy and so must be managed for the long term.

Understand parenting styles and their impact on child and adolescent development.

Comprehend the stages of cognitive development according to Jean Piaget and their applications to real-life scenarios.

Understand the concept of reliability in research measurement and its types.

Recognize the difference between reliability and accuracy.

---

Definitions:

Dutch Republic

The historical period of the Netherlands from 1581 to 1795, characterized by its economic prosperity, maritime trade dominance, and contributions to the arts and sciences.

Rachel Ruysch

A prominent Dutch painter known for her intricate and realistic still life paintings, particularly of flowers, during the late 17th and early 18th centuries.

Grower and Exporter

A term used to describe individuals or companies that cultivate agricultural products and supply them to international markets.

Poussin

Nicolas Poussin (1594-1665) was a French painter in the classical style whose work predominantly featured clarity, logic, and order, often focusing on scenes from the Bible or ancient history.