1. Partial equilibrium analysis concerns only supply or only demand while genera

Question

1. Partial equilibrium analysis concerns only supply or only demand while general equilibrium analysis deals with supply and demand at the same time.
2. A pure exchange economy is an economy where goods are traded but there is no production.
3. If the assumptions of the first theorem of welfare economics apply and if the economy is in a competitive equilibrium, then any reallocation that benefits someone must harm someone else.
4. If there are consumption externalities, then a competitive equilibrium is not necessarily Pareto optimal.
5. Every allocation on the contract curve is Pareto optimal.

Explanation / Answer

1.TRUE

2..FALSE

3.FALSE

4.TRUE

5.FALSE

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.