Exchange Efficiency, Input Efficiency, and Substitution Efficiency Are Satisfied When

question 22

Multiple Choice

Exchange efficiency, input efficiency, and substitution efficiency are satisfied when ______________________. This result is known as ______________.

• A)free trade occurs; Walras Law.
• B)all markets are at a general competitive equilibrium; Walras Law.
• C)all markets are at a general competitive equilibrium; the First Fundamental Theorem of Welfare economics.
• D)resources are scarce; the First Fundamental Theorem of Welfare economics.

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Definitions:

Ground

The solid surface of the Earth, where various geological and biological processes occur.

Drumlins

streamlined, elongated hills formed by glacial action, made of till and shaped like inverted spoons.

Sediment

Particles of rock, minerals, or biological materials that have been transported and deposited by wind, water, or ice, often forming layers in bodies of water.

Glacier

A large mass of ice, formed from compacted layers of snow, that moves slowly over land.