Question 11 pts
In a Pareto efficient allocation,
Group of answer choices
there are gains from trade still not captured in theeconomy.
there is no way to make any person better off without makingsomeone else worse off
Some people can be made better off without making others worseoff, but there is no way to make most people better off withoutmaking some others worse off.
Total utility in society is maximized.
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Question 21 pts
The result that a perfectly competitive price system bringsabout an efficient allocation of resources is known as:
Group of answer choices
The First Theorem of Welfare Economics.
The Second Theorem of Welfare Economics
Gresham's Law.
The Principle of Market Failure.
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Question 31 pts
All of the following are considered to produce inefficiency inmarkets EXCEPT:
Group of answer choices
Public Goods
Externalities
Imperfect Competition
All of the above result in market failure.
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Question 41 pts
A model in which all markets in the economy clear simultaneouslyis a ___________ equilibrium model.
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Question 51 pts
A model which examines how one market in the economy clears is a_____________ equilibrium model.
