Pareto optimality rdquo is a situation where ........

Economic Affairs Others

Pareto optimality” is a situation where

Resources are allocated in a way in which it is impossible to make any one individual better off without making at least one individual worse off

Resources are allocated in the most socially desirable way

Resource are allocated as per democratic means based on the principles of equity and fairness

All of the above apply

छोटे Courses बड़े Results

Master Others

Prepare through Micro-courses

Try Now

Explanation:

The situation in option (a) may not be socially desirable.For e.g. we may take away Rs. 10,000 from a billionaire and give it to a BPL family; it would hardly make a difference to the welfare of the rich but would matter a lot for the BPL family. So, while this transfer of Rs. 10,000 is socially desirable, it would not be considered pareto optimum, nor is it done based on democratic means.