Economics (AS & A Level) · Feb / March 2022 · Paper 32 · Question 1
9708Efficiency and market failure
What can be deduced about an economy where no-one can be made better off without making someone else worse off?
- AFirms succeed in maximising profits.
- BProduction causes no external costs or benefits.
- CThe distribution of income and wealth is perfectly equal.
- DThe resources of the economy are allocated efficiently.
As printed in the paper
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Correct answer: D. The resources of the economy are allocated efficiently.
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