The two welfare theorems show that equilibrium implies optimality, and any optimal outcome can be achieved as equilibrium through redistribution. This supports quantity-based policies over price manipulation, yet governments often choose the latter, undermining efficiency.
The first welfare theorem discussed three weeks ago states that Pareto optimality emerges under Walrasian equilibrium. To recap, one crucial aspect of equilibrium is that individual i's preference ordering over commodity bundle x can be expressed through its value: x'ᵢ ≻ xᵢ ⟹ p · x'ᵢ > p · xᵢ. This first establishes that the analysis can be quantified. The second crucial aspect requires exhausting all available endowments ω, meaning ∑xᵢ = ∑ωᵢ.
Game theory represents another principal strand in microeconomic analysis. The preceding US-China tariff conflict lends itself readily to such frameworks given its quantifiable outcomes.
The colloquially termed "origin laundering" exists in a grey area of international trade and represents a tax avoidance method, formally known as "origin fraud" or "transshipment".
Following Britain, Vietnam has reached a trade agreement with the United States. US President Donald Trump announced the trade agreement with Vietnam on July 2, with tax rates higher than expected by the outside world.
Inflation has fallen recently, and the standard explanation is economic weakness. Yet lower inflation should boost demand under basic economic principles, strengthening the economy.
Renowned Sinologist Professor Susanne Weigelin-Schwiedrzik recently delivered a lecture in Tübingen, Germany, titled "The United States, China, and Russia: Can the Three Great Powers Reach Consensus on How to Reorganize the World?"
Game theory represents another principal strand in microeconomic analysis. The preceding US-China tariff conflict lends itself readily to such frameworks given its quantifiable outcomes.
The colloquially termed "origin laundering" exists in a grey area of international trade and represents a tax avoidance method, formally known as "origin fraud" or "transshipment".
According to Xinhua News Agency, the CCP Central Politburo reviewed and established the "Party Central Decision-Making Deliberation and Coordination Mechanism" on June 30, setting up a "Party Central Decision-Making Deliberation and Coordination Institution
