When the First Fundamental Theorem of Welfare Economics Doesn't Hold,there

question 5

Multiple Choice

When the First Fundamental Theorem of Welfare Economics doesn't hold,there is a market failure.

• A) True
• B) False
• C) Uncertain

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Definitions:

Microfinance

A type of financial service provided to unemployed or low-income individuals or groups who otherwise lack access to traditional banking services.

Collateral

An asset that a borrower offers to a lender as a security for a loan, which can be seized if the loan is not repaid.

Savings Deposits

Bank accounts that pay interest on the money deposited, meant for saving rather than daily transactions.

Capital Formation

The process of building up a country's stock of real capital, such as buildings, machinery, and equipment, which is used for production.