The Second Welfare Theorem of Economics States That If Preferences

question 43

True/False

The second welfare theorem of economics states that if preferences are convex, then any Pareto optimal allocation could be achieved as a competitive equilibrium after some reallocation of initial endowments.

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Definitions:

Criteria

Standards or principles by which something may be judged or decided.

Dealership

A business establishment authorized by a manufacturer to sell its products, typically referring to automotive vehicles.

Perception Influences

Factors that can alter or shape the way individuals interpret or conceive their external environment and internal states.

Focal Object

An object or entity that is the primary focus of attention in studies or discussions within certain contexts.