The concept of 'Pareto Optimality' is associated with:
A. Welfare economics
B. Development economics
C. Monetary economics
D. International trade theory
Answer: Option A
Solution (By JKSSB Mock Tests)
Pareto Optimality is a concept in welfare economics where resources are allocated in such a way that no one can be made better off without making someone else worse off.
Explanation:
Technology primarily affects aggregate supply. Aggregate demand is determined by consumption, investment, government spending and net exports.
Explanation:
The law of diminishing returns (or variable proportions) operates in the short run when one or more factors are fixed and additional units of a variable factor are added.
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