The Second Fundamental Theorem of Welfare Economics States That

question 1

Multiple Choice

The second fundamental theorem of welfare economics states that

• A) under certain conditions, a competitive equilibrium is Pareto optimal.
• B) a competitive equilibrium is always Pareto optimal.
• C) under certain conditions, a Pareto optimum is a competitive equilibrium.
• D) a Pareto optimum is always a competitive equilibrium.
• E) a Pareto optimum does not have to be a competitive equilibrium.

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Definitions:

Skewed

Refers to a distribution that is not symmetrical, with a longer tail on one side of the peak than the other.

Distribution

A statistical term that describes all the possible values and occurrences that a data set or variable can take within a range.

Accidents

Unplanned events that result in injury, loss, or damage, occurring as a result of unpredictable factors or circumstances.

Standard Deviation

A measure of the dispersion or spread in a set of values, indicating how much variation there is from the average (mean).