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. Income is equally distributed

D. All markets are perfectly competitive

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

Which of the following is a feature of a flexible exchange rate system?

A. Complete absence of central bank intervention in all cases

B. Exchange rate is fixed by government decree

C. Exchange rate is determined by market forces of demand and supply of foreign exchange

D. No role for speculation

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Correct Answer: Option C

Explanation:
Under a pure flexible (floating) exchange rate system, the value of the currency is determined by the interaction of demand and supply in the foreign exchange market.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Goods and Services Tax' on services provided by journalists is:

A. 0%

B. 18%

C. 12%

D. 5%

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Correct Answer: Option B

Explanation:
Journalist services attract 18% GST unless exempt.

This question belongs to: Economy GK Economy Set 1

Question #3

Marginal revenue product of labour is calculated as:

A. AP of labour divided by wage

B. MP of labour multiplied by marginal revenue

C. marginal cost divided by output

D. total product multiplied by wage

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Correct Answer: Option B

Explanation:
Marginal revenue product of labour equals marginal product of labour multiplied by marginal revenue.

This question belongs to: Economy GK Economy Set 1

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