The First Fundamental Theorem of Welfare Economics States That

question 22

Multiple Choice

The First Fundamental Theorem of Welfare Economics states that:

• A) the competitive equilibrium,where supply equals demand,can always be achieved through government intervention.
• B) social efficiency can be achieved if and only if government intervenes in the economy.
• C) the competitive equilibrium,where supply equals demand,maximizes social efficiency.
• D) social efficiency cannot be achieved in any competitive equilibrium.

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Definitions:

Represent

To act on behalf of someone or something, or to symbolize, embody, or exemplify particular qualities or ideals.

Collective Agreement

A written contract negotiated between an employer and a union representing the employees, detailing the terms of employment, wages, and workplace policies.

Grievance

A formal complaint or protest raised by an employee regarding workplace conditions or treatment.

Union Organizing Drive

A campaign initiated by workers or a trade union to encourage a group of employees at a workplace to join or form a union.