Economics 9708 · AS & A Level · Behavioural economics

Behavioural economics — practice question

Which statement shows the condition required to achieve Pareto optimality?

  • AAll consumers maximise their utility subject to their available income.
  • BIt is not possible to produce greater output with the resources available.
  • CIt is not possible to reallocate resources to make someone better off without someone else becoming worse off.
  • DPotential losers from any reallocation of resources cannot be compensated by those who gain.

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