There are two statements below. You are required to comment on each of those statements. Answer in few sentences, maximum two paras. You may even present your argument as a list of bullet points or make your point with a simple picture/example/counter example. Anything written over half an A4 page will be ignored. 

1) There is no role for government policy in an economy. Discuss this statement in the light of the First Welfare Theorem.  

2) In a Competitive Equilibrium of an exchange economy, it is impossible to uniquely determine the absolute value of all the prices. Discuss.