Economics 9708 · AS & A Level · Behavioural economics

Behavioural economics — practice question

What can be inferred about an economy in which nobody can be made better off without making another person worse off?

  • AFirms succeed in maximising profits.
  • BProduction causes no external costs or benefits.
  • CThe distribution of income and wealth is perfectly equal.
  • DThe resources of the economy are allocated efficiently.

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