Economics 9708 · AS & A Level · Behavioural economics

Behavioural economics — practice question

In an economy, it is impossible to improve one person’s situation without worsening another person’s situation. What does not necessarily follow from this?

  • AThe conditions for allocative efficiency have been met.
  • BThe conditions for productive efficiency have been met.
  • CThe distribution of income is socially acceptable.
  • DThe economy is operating at a point on its production possibility frontier.

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