The First Theorem of Welfare Economics Can Be Expressed as

question 78

Multiple Choice

The First Theorem of Welfare Economics can be expressed as

• A) the competitive equilibrium results only when no transactions costs exist.
• B) the competitive equilibrium does not involve reallocation of endowments.
• C) any efficient allocations can be achieved by competition.
• D) the competitive equilibrium is efficient.

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Definitions:

Consolidate

To combine multiple elements into a single, more effective or coherent whole, often used in the context of financial statements or businesses.

Statement of Dissolution

A legal document filed with a government body to officially dissolve a corporation or partnership.

LLP

Limited Liability Partnership, a legal structure for businesses where partners have limited liabilities, protecting personal assets from business debts.

Creditor

An individual or institution to whom money is owed by a debtor.