Question: (a) Using the Welfare Economics Theorem, explain whether a real world economy can achieve Pareto efficiency. (6) (b) The market may fall short of providing

(a) Using the Welfare Economics Theorem, explain whether a real world economy can achieve Pareto efficiency. (6)

(b) The market may fall short of providing the efficient amount of the public good because of the free rider problem. In what ways is this possible? (6)

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