5) The second welfare theorem implies that

A) We can use any kind of taxation to achieve a Pareto efficient allocation.

B) We have to give up some production of good 1 to produce more of good 2.

C) We have to give up some consumption of good 1 to consumer more of good 2.

D) We can use any kind of lump sum transfers or any kind of lump sum taxes.

1. Please mark allincorrectstatements.

A) The private market fails to provide public goods efficiently because people have different incomes.

B) Voting fails to provide public goods efficiently because the choice of the median voter does not have to match the efficient choice.

C) Efficiency in the provision of a public good will only be attained by modifying the incentives to align private and social benefits. (Please ignore side payments, which could be considered to modify the incentives).

D) Personalized prices fail to provide public goods efficiently unless consumers act honestly.

2. course

A) Explains why the share of public spending tends to increase.

B) Charges personalized prices to consumers with the personalized prices based solely on each consumer's preferences.

C) Requires side payments, which is money that has to be put into the system.

D) None of the above.

3. The allocation of a public good through voting typically implies that

A) The mean voter will be decisive.

B) The median voter will be decisive.

C) The median voter is the same as the mean voter.

D) The provision of public goods is efficient.

E) all of the above.