1 Pareto Efficiency and First Welfare Theorem (15 pts) (a) Write down the three general principles for an efficient allocation. (5 pts) (b) Write down the First Welfare Theorem. (5 pts) (c) (TRUE/FALSE) Is the following statement true or false? Explain. (5 pts) Suppose an allocation is Pareto efficient. This implies that consumer surplus is equally divided among all the D people who consume, and producer surplus is equally divided among all the S people who produce