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Questions › CUET-PG › CUET-PG 2026 › Q65
4 marks, −1Microeconomics › Welfare economics and social choice › Pareto efficiency and Pareto improvementsHardabout 1 min

CUET-PG 2026 Question 65: Welfare economics and social choice

Match the LIST-I with LIST-II.

List I

A. Efficiency in exchange

B. Efficiency in the use of inputs

C. Efficiency in the output market

D. Market failure.

List II

I. Externalities

II. MRSxyR=MRSxyMMRS^R_{xy} = MRS^M_{xy}MRSxyR​=MRSxyM​

III. MRTSLKX=MRTSLKYMRTS^X_{LK} = MRTS^Y_{LK}MRTSLKX​=MRTSLKY​

IV. MRTxy=MRSxyMRT_{xy} = MRS_{xy}MRTxy​=MRSxy​.

Choose the correct answer from the options given below:

Tap an option to check your answer.

Answer and worked solution

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Plain-text version

Match the LIST-I with LIST-II. List I A. Efficiency in exchange B. Efficiency in the use of inputs C. Efficiency in the output market D. Market failure. List II I. Externalities II. MRS^R_(xy) = MRS^M_(xy) III. MRTS^X_(LK) = MRTS^Y_(LK) IV. MRT_(xy) = MRS_(xy). Choose the correct answer from the options given below: (A) A-II, B-III, C-IV, D-I (B) A-III, B-IV, C-I, D-II (C) A-IV, B-II, C-I, D-III (D) A-III, B-IV, C-II, D-I

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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