Which of the Following Is True About Competitive Equilibria in Environments

question 22

Multiple Choice

Which of the following is true about competitive equilibria in environments where the conditions of the first welfare theorem are satisfied?

• A)We have to be able to represent the demand side of the economy by a representative consumer.
• B)Consumer surplus is smaller than what would be estimated if it were measured on the market demand curve when goods are normal.
• C)Producer surplus is zero in the long run when all firms share the same technology.
• D)(a) and (b) are true.
• E)(b) and (c) are true.
• F)(a) and (c) are true.
• G)All of the above.
• H)None of the above.

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Definitions:

Retroactive Interference

A memory phenomenon where newer information interferes with the ability to remember older information.

Source Amnesia

Attributing to the wrong source an event we have experienced, heard about, read about, or imagined. Source amnesia, along with the misinformation effect, is at the heart of many false memories.

Retroactive Interference

A memory phenomenon where newly learned information interferes with the recall of information learned previously.

Previously Learned Information

Knowledge or skills that have been acquired through experience or education before the current moment or context.