The Economist Who Rigorously Proved the Factor-Price Equalization Theorem Was

question 5

Multiple Choice

The economist who rigorously proved the factor-price equalization theorem was

• A) David Ricardo
• B) Adam Smith
• C) Paul Samuelson
• D) Wassily Leontief

Understand the concept of private solutions to externalities, including the Coase theorem.

Illustrate how market-based policies can address both positive and negative externalities.

Analyze scenarios based on supply and demand diagrams to identify inefficiencies caused by externalities.

Demonstrate the mechanism and effectiveness of tradable pollution permits.

---

Definitions:

Mass Customization

A marketing and manufacturing technique that combines the flexibility and personalization of custom-made products with the low unit costs associated with mass production.

Market Segmentation

The process of dividing a heterogeneous market into smaller, more homogeneous groups of customers with similar needs, characteristics, or behaviors.