The concept of 'Pareto Efficiency' implies that: MCQ with Answer and Explanation

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The concept of 'Pareto Efficiency' implies that:

A. No reallocation can make one person better off without making someone else worse off

B. Resources can be reallocated to make someone better off without making anyone worse off

C. All markets are perfectly competitive

D. Income is equally distributed

Answer: Option A

Solution (By JKSSB Mock Tests)

A Pareto efficient allocation is one where it is impossible to make any individual better off without making at least one individual worse off.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'Goods and Services Tax' on sale of used goods is:

A. 28%

B. levied on margin

C. 18%

D. 0%

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Correct Answer: Option B

Explanation:
GST on used goods is levied on the margin for registered dealers under the margin scheme.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Pigou effect' suggests that falling prices:

A. increase unemployment

B. increase real wealth and consumption

C. reduce real wealth

D. reduce money supply

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Correct Answer: Option B

Explanation:
The Pigou effect states that lower prices raise real wealth and stimulate consumption.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'Goods and Services Tax' on passenger transport by air-conditioned buses is:

A. 5%

B. 0%

C. 18%

D. 12%

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Correct Answer: Option A

Explanation:
AC bus passenger transport attracts 5% GST.

This question belongs to: Economy GK Economy Set 1

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