Economics 9708 · AS & A Level · Behavioural economics

Behavioural economics — practice question

What condition must be satisfied in order to achieve Pareto efficiency?

  • Awhen it is not possible for some people to become better off without others becoming worse off
  • Bwhen it is possible to produce greater output with the same quantity of inputs
  • Cwhen resources have spare capacity
  • Dwhen resources can be re-allocated and total consumer satisfaction can be increased

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