In a Perfectly Competitive Equilibrium with Production and Trade,which of the Following

question 22

Multiple Choice

In a perfectly competitive equilibrium with production and trade,which of the following results occur(s) ?

• A) Pareto-efficiency is obtained.
• B) The First Welfare Theorem is satisfied.
• C) There is efficiency in production.
• D) All of the above.

---

Definitions:

Government Purchases

Expenditures by the government sector for goods and services that government consumes in providing public services and for public capital that has long-term usage.

Consumption

The total amount of goods and services consumed by households over a specific time period.

Nominal GDP

The total worth of all end products and services made inside a nation over a specified time frame, valued at present-day prices.

Real GDP

Measure of a country's economic output adjusted for price changes (inflation or deflation), representing the value of all goods and services produced over a specific time period at constant prices.