QUESTION 9

1. Consider the following GDP levels and income distributions in the years 1950 and 2020 (the dollar values are inflation-adjusted).

   Year	GDP	Income of 1st Tercile	Income of 2nd Tercile	Income of 3rd Tercile
   1950	1 trillion	0.2 trillion	0.3 trillion	0.5 trillion
   2020	8 trillion	0.4 trillion	1.2 trillion	6.4 trillion

   Compute Peoples growth between 1950 and 2020.

   	a.	432%.
   	b.	250%.
   	c.	526%.
   	d.	500%.

QUESTION 10

1. The Second Welfare Theorem states that

   	a.	competitive markets are efficient and fair, as long as there are no externalities and no concentration of market power.
   	b.	competitive markets are always efficient and fair, even if there are externalities.
   	c.	when there are no externalities and no concentration of market power, an efficient and fair market outcome can be achieved via redistribution of wealth/opportunity.
   	d.	substantial inequality is a necessary by-product of an economy that operates efficiently.