4. From the Second Welfare Theorem it can be concluded that the distribution of income is irrelevant for an economy in which there is a Pareto optimum. A) True. The Second Theorem guarantees that through non-distorting transfers it is possible to achieve any distributive arrangement so that the distribution of income is irrelevant. B) False. Although the Second Theorem says that through non-distorting transfers it is possible to achieve any distributive arrangement, since there are no public policy instruments that allow implementing such non-distorting transfers, this is a theoretical exercise, so in practice the distribution of income if it matters. C) Uncertain. The distribution of income, being a distributive problem, is a normative problem for which it is not possible to qualify the statement. D) None of the above