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Questions › CUET-PG › CUET-PG 2023 Shift 2 › Q29
4 marks, −1Microeconomics › Welfare economics and social choice › Pareto efficiency and Pareto improvementsModerateabout 1 min

CUET-PG 2023 Shift 2 Question 29: Welfare economics and social choice

Given below are two statements: One is labelled as Assertion A and the other is labelled as Reason R: Assertion A: Pareto optimality implies that an allocation of resources is inefficient when it is possible, through some change in the allocation of resources to benefit at least one person without making anyone else worse off. Reason R: Pareto efficiency takes into account distributive justice and compensation of people affected negatively. In the light of the above statements, choose the most appropriate answer from the options given below:

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Answer and worked solution

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Welfare economics and social choice has come up 62 times in 6 exams since 2004.

What this question tests

This question is on Pareto efficiency and Pareto improvements, part of Welfare economics and social choice in Microeconomics.

What it means for an allocation to be efficient, checked in exchange economies and other settings.

TestStop has 40 past-paper questions on this subtopic.

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Question from the CUET-PG 2023 Shift 2 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.