Which of the following statements about deadweight loss are correct? 1. It exists in monopoly. 2. It is zero in perfect competition. 3. It arises due to underproduction relative to the competitive level. 4. It arises due to overproduction in monopoly.

Which of the following statements are true in relation to the second fundamental theorem of welfare economics? a) Agents have concave preferences. b) Problems of efficiency and distribution can be separated. c) Agents have convex preferences. d) Problems of efficiency and distribution cannot be separated.

Which of the following is NOT an assumption of Pareto Optimality?