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.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter22: Frontiers Of Microeconomics

Section: Chapter Questions

Problem 8PA

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