4. True/False: From Walras' law it can be concluded that in the market with two goods, if demand equals supply in one market, then demand must be equal to supply in other markets. 5. True/False: If the assumptions of the first theorem of welfare economics hold and if the economy is in competitive equilibrium, then any reallocation What benefits one person must harm another. 6. True/False: If there is a consumption externality, then balance allocation competitive is not necessarily Pareto optimal. 7. True/False: A competitive Equilibrium allocation must be feasible allocation.

4. True/False: From Walras' law it can be concluded that in the market with two goods, if demand equals supply in one market, then demand must be equal to supply in other markets. 5. True/False: If the assumptions of the first theorem of welfare economics hold and if the economy is in competitive equilibrium, then any reallocation What benefits one person must harm another. 6. True/False: If there is a consumption externality, then balance allocation competitive is not necessarily Pareto optimal. 7. True/False: A competitive Equilibrium allocation must be feasible allocation.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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