Fundamentals of Welfare Economics
1.Draw the contract curve in an Edgeworth Box diagram.
2 Define a Pareto improvement in the allocation of resources.
3 Explain the efficiency conditions for an economy with variable production.
4 State the First Fundamental Theorem of Welfare Economics.
5 State the Second Fundamental Theorem of Welfare Economics.
6 Identify which condition for efficiency is violated when producers have monopoly power.
7 Provide examples of the nonexistence of markets.
8 Identify the allocation that maximizes social welfare.
9 Describe two controversial assumptions of welfare economics.
