For Each Pair of Sentences Below, Select the Letter of the Option

question 20

Multiple Choice

For each pair of sentences below, select the letter of the option that provides the best sentence variety. Which answer choice provides the best sentence variety?

• A) For instance, one house served as a recording studio, and another was a business office.
• B) One house served as a recording studio. Another was a business office.

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Definitions:

Second Welfare Theorem

An economic principle stating that under certain conditions, any efficient allocation of resources can be attained through a competitive equilibrium, assuming perfect markets and price flexibility.

Pareto Optimal

A distribution state of resources where trying to improve the status of one individual inevitably leads to the decline of another's.

Competitive Equilibrium

A state in a market-based economy where supply equals demand, and prices are stable, facilitating the optimal distribution of resources.

Contract Curve

In an Edgeworth Box diagram, the curve that represents all the Pareto efficient allocations between two consumers.