The concept of 'Pareto Optimality' is associated with:
A. International trade theory
B. Development economics
C. Monetary economics
D. Welfare economics
Answer: Option D
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:
Returns to scale examine how output changes when all inputs are increased by the same proportion. They can be increasing, constant or decreasing.
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