Economics 9708 · AS & A Level · Behavioural economics

Behavioural economics — practice question

In an economy with two people, X earns $100 and Y earns $50. Under the Pareto criterion, which change in income would count as a clear improvement in economic welfare?

  • AX’s income $75; Y’s income $75
  • BX’s income $85; Y’s income $70
  • CX’s income $95; Y’s income $100
  • DX’s income $130; Y’s income $50

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