Assignment:
• Read F.A. Hayek's The Use of Knowledge in Society
https://www.kysq.org/docs/Hayek_45.pdf
1. Explain the First and Second Fundamental Theorems of Welfare Economics.
2. Explain how The Use of Knowledge in Society poses problems for the 2nd Fundamental Theorem of Welfare Economics.
3. What are the deadweight losses to boat piracy? What are the transfers?
1. What do the deadweight losses assume about the preferences of the pirates and sailors?