Asked by Shavon Bashir on Jul 12, 2024
Verified
The main point of the second theorem of welfare economics is that:
A) efficiency is more important than equity.
B) efficiency may be achieved, but equity is not a feasible goal.
C) any attempt to achieve an equitable outcome must occur off the contract curve.
D) any equitable outcome can be achieved by reallocating the resources among the members of a society.
Welfare Economics
The branch of economics that focuses on the optimal allocation of resources and goods and how the allocation affects social welfare.
Equitable Outcome
An equitable outcome is a situation or result in economic transactions or distributions that is considered fair or just among all parties involved.
Contract Curve
In economics, a line on an Edgeworth box diagram representing the set of optimal allocations between two parties.
- Decode the importance of positions on, within, and beyond the utility possibilities frontier in connection to efficiency, justice, and attainability.
- Elucidate the prerequisites for achieving efficiency in manufacturing processes and the market for goods, with a focus on the significance of marginal rates of substitution and transformation.
Verified Answer
Learning Objectives
- Decode the importance of positions on, within, and beyond the utility possibilities frontier in connection to efficiency, justice, and attainability.
- Elucidate the prerequisites for achieving efficiency in manufacturing processes and the market for goods, with a focus on the significance of marginal rates of substitution and transformation.
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