Which of the following does not apply to Pareto efficiency?
Correct answer: D. EquityCompare Credit Cards
- A. Consumptive efficiency
- B. Production efficiency
- C. Allocative efficiency
- D. EquityCompare Credit Cards
Explanation
Pareto efficiency concerns efficient allocation, production, and consumption, but it does not judge whether the resulting distribution is fair. Equity is therefore a separate concern from Pareto efficiency.
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
The marginal utility of a good refers to the:
Trade based on absolute advantage was presented by:
The doctrine of comparative advantage states that there are gains from international trade:
The elasticity of demand for cigarettes by a non-smoker is:
Normally a demand curve will have the shape:_________?
Oligopoly means:___________?