Economics 9708 · AS & A Level · Behavioural economics

Behavioural economics — practice question

In an economy, nobody can be made better off unless this causes someone else to be worse off. What can be deduced from this?

  • AIndividuals are the best judges of their own well-being.
  • BIndividuals can be relied upon to behave rationally.
  • CThe distribution of income is socially optimal.
  • DThe economy’s resources are allocated efficiently.

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