An allocation is Pareto-efficient if no reallocation of resources would make some people _______ without making others ________?
Correct answer: C. better off; worse off
- A. worse off; worse off
- B. better off; better off
- C. better off; worse off
- D. equal, unequal
Explanation
Pareto efficiency means no feasible reallocation can make at least one person better off without making someone else worse off. This is why the pair is “better off; worse off.”
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Microeconomics
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
Practise Microeconomics
1,742 free Microeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Microeconomics questions
We cannot say whether one allocation of resources is better than another allocation because ?
The allocation of resources is not efficient if ?
The social costs of monopoly power arises because ?
A dominant strategy is ?
The prisoners Dilemma Game demonstrates that ?
The reason for the kinked demand curve is that ?