Question 4 (1 point) How does a competitive equilibrium maximize total welfare? 0 it doesn't require costly central planning 0 it sources production from the lowest cost producers and provides goods and services to the consumers with the highest benefit 0 it is based on the pursuit of selfinterest and people are inherently greedy O competitive markets are more responsive to changing technologies and consumer preferences Question 5 (1 point) What was Hayek's main argument in "The Use of Knowledge in Society" 0 because deadweight loss increases with the size of a tax, the government can actually increase tax revenue by lowering taxes 0 a competitive equilibrium maximizes total welfare because there is no deadweight loss 0 central planning is inefficient because it often creates perverse incentives O markets are efficient at processing private information on costs and benefits held by individual consumers and producers