Economics (AS & A Level) · Oct / Nov 2021 · Paper 31 · Question 1
9708Efficiency and market failure
What is a necessary condition required 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
As printed in the paper
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Correct answer: A. when it is not possible for some people to become better off without others becoming worse off
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