The First Fundamental Theorem of Welfare Economics Indicates That

question 12

Multiple Choice

The first fundamental theorem of welfare economics indicates that

• A) every Pareto-optimal allocation for an economy can be achieved as a competitive equilibrium for an appropriately defined distribution of income
• B) an economy should be organized so as to maximize the welfare of the least well-off person in society
• C) when a competitive equilibrium exists, the allocations of inputs and outputs in the economy define a Pareto-optimal outcome

---

Definitions:

Other-Focused Self-Construal

A perspective where an individual's sense of self is heavily influenced by their relationships and roles within society.

Interdependent Self-Construal

A view of the self where individuals see themselves as connected to others and defined by social relationships.

Cultural Trauma

Widespread emotional and psychological damage within a community resulting from major disruptive events that affect its cultural identity.

Culture-Bound Syndrome

A combination of psychiatric and somatic symptoms recognized within specific cultures or societies but may be unfamiliar or unclassified in other cultures.