Any _________________ Allocation of Goods and Inputs Can Be Attained

question 25

Multiple Choice

Any _________________ allocation of goods and inputs can be attained as a general competitive equilibrium through a judicious ___________ of the economy's___________________. This result is known as_____________

• A)arbitrary, allocation, resources; Walras Law.
• B)equitable, allocation, goods; The First Fundamental Theorem of Welfare Economics
• C)efficient, allocation, scarce supplies of resources; the First Fundamental Theorem of Welfare economics.
• D)efficient, allocation, scarce supplies of resources; the Second Fundamental Theorem of Welfare economics.

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Definitions:

Variable Cost

Costs that change in proportion to the good or service that a business produces.

Profit

The financial gain obtained when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Market Price

The current price at which a good or service can be bought or sold in a market, determined by the forces of supply and demand.

Sacks

Bags made of various materials, typically used for storing or transporting items.