The First Welfare Theorem

question 54

Multiple Choice

The first welfare theorem:

• A) tells us that, in a general equilibrium with perfect competition, the allocation of resources is Pareto efficient.
• B) clarifies how the "invisible hand" of the market guides people toward socially undesirable choices.
• C) tells us that a general equilibrium with perfect competition is not Pareto efficient.
• D) is also the only welfare theorem.

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Definitions:

Psychosocial Functions

The roles that relationships and social networks play in shaping a person's psychological development and functioning.

Role Modeling

The process by which individuals pattern their behavior on the behavior of others whom they admire or wish to emulate.

Protégé

An individual who is guided and supported by a more experienced or influential person.

Career Stage Model

A theoretical framework that divides an individual's career into distinct stages, each characterized by specific developmental tasks, challenges, and opportunities.