Which of the Following Statements Regarding General Equilibrium Analysis Is

question 5

Multiple Choice

Which of the following statements regarding general equilibrium analysis is not true?

• A) The demand and supply curve are derived from the nation's production frontier and indifference map
• B) It shows the same basic information as offer curves
• C) It shows the same equilibrium relative commodity prices as with offer curves
• D) It shows the same equilibrium relative commodity prices as partial equilibrium analysis.

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Definitions:

Total Amount

The complete or overall sum of quantities or values.

Pareto Efficient

An allocation pattern of resources where attempts to advantage any individual or criterion will inevitably lead to the detriment of another individual or criterion.

Public Good

A type of good that is non-excludable and non-rivalrous, meaning individuals cannot be effectively excluded from use, and where use by one individual does not reduce availability to others.

Private Good

A type of good that is both excludable and rivalrous, meaning that non-paying consumers can be prevented from accessing it and its consumption by one individual prevents others from using it.