The Idea That Every Pareto Efficient Allocation Is the Competitive

question 18

Multiple Choice

The idea that every Pareto efficient allocation is the competitive equilibrium for some initial allocation of resources is known as:

• A) the first welfare theorem.
• B) the second welfare theorem.
• C) the third welfare theorem.
• D) the exchange efficiency condition.

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Definitions:

Broad Preferences

General or overarching choices or inclinations that an individual or group may have.

Geert Hofstede

A Dutch social psychologist who is known for his research on cross-cultural groups and organizations, particularly for developing cultural dimensions theory.

National Culture

The set of shared values, beliefs, customs, and practices that characterize the people of a particular country or nation.

Impatience

A tendency to be quickly irritated or provoked by delays or obstacles.