Economics 9708 · AS & A Level · Behavioural economics

Behavioural economics — practice question

What would be in line with a shift towards Pareto optimality?

  • Awhen negative externality lowers the utility of an individual
  • Bwhen consumption of a good is non-rival
  • Cwhen reallocation of resources can make someone better off without making any other person worse off
  • Dwhen trade takes place to make one nation better off at the expense of its trading partner

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