Match each of the terms on the left with its definition on the right. Click on the term first and then click on the matching definition. As you match them correctly they will move to the bottom of the activity.
general equilibrium analysis partial equilibrium analysis social welfare function utilitarian social welfare function Rawlsian social welfare function egalitarian Pareto efficiency exchange efficiency exchange efficiency input efficiency output efficiency Edgeworth box consumption contract curve production contract curve production possibilities frontier (PPF) marginal rate of transformation (MRT) First Welfare Theorem Second Welfare Theorem lump- | Curve that shows all Pareto- An economic allocation of goods in which the goods cannot be reallocated without making at least one individual worse off. Graph of an economy with two economic actors and two goods that is used to analyze market efficiency. Curve that connects all possible efficient output combinations of two goods. Determination of the equilibrium in a particular market that assumes there are no cross- Curve that shows all possible Pareto- A Pareto- Belief that the ideal society is one in which each individual is equally well off. A Pareto- A Pareto- Theorem stating that perfectly competitive markets in general equilibrium distribute resources in a Pareto- Transfer to or from an individual for which the size is unaffected by the individual’s choices. Mathematical function that combines individuals’ utility levels into a single measure of economic performance. Mathematical function that computes society’s welfare as the sum of every individual’s welfare. A mix of outputs that simultaneously supports exchange and input efficiency. The tradeoff between the production of any goods on the market. The study of market behavior that accounts for cross- Mathematical function that computes society’s welfare as the welfare of the worst- Theorem stating that any given Pareto- |