Which of the following statements (s) are true with respect to the concept of “ efficiency ” as used in mainstream economics? Efficiency occurs when no possible re-organisation of production can make anyone better off without making someone else worse off An economy is clearly inefficient if it is inside the Production Possibility Frontier (PPF) At a minimum, an efficient economy is on its Production Possibility Frontier (PPF) The terms such as ‘ Pareto Efficiency’, ‘Pareto Optimality’ and ‘Allocative Efficiency’ are all essentially one and same which denote ‘efficiency in resource allocation’ Select the correct answer using the code given below: Options: A . &nbsp2 and 3 only B . &nbsp1 and 4 only C . &nbsp1 and 3 only D . &nbsp1, 2, 3 and 4

Which of the following statements (s) are true with respect to the concept of &l

Question

Which of the following statements (s) are true with respect to the concept of “efficiency” as used in mainstream economics?

Efficiency occurs when no possible re-organisation of production can make anyone better off without making someone else worse off

An economy is clearly inefficient if it is inside the Production Possibility Frontier (PPF)

At a minimum, an efficient economy is on its Production Possibility Frontier (PPF)

The terms such as ‘ Pareto Efficiency’, ‘Pareto Optimality’ and ‘Allocative Efficiency’ are all essentially one and same which denote ‘efficiency in resource allocation’

Select the correct answer using the code given below:

Options:

A . 2 and 3 only

B . 1 and 4 only

C . 1 and 3 only

D . 1, 2, 3 and 4

Answer: Option B
Answer: (b)
When the re-organisation of production is not possible which can make anyone better off without making someone else worse off then efficiency occurs.
Pareto Efficiency, Pareto Optimality and Allocative Efficiency are all the same and indicates “efficiency in resource allocation”.

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