Economically optimal orefficient allocation ofgoods and services is always reached inaneconomy when ...........

Economic Affairs Others

Economically optimal orefficient allocation ofgoods and services is always reached inaneconomy when

Which of the above is/are correct?

1 only

2 only

Both 1 and 2

None

Optimal allocation happens when goods and services are distributed according to consumer preferences and needs ofcorporations.

Statement 1: It is possible that by employing all resources, we may reach a stage of disguised unemployment, for e.g. as common in rural areas.

Statement 2: This is distribution based on equity and welfare concerns, which may not be efficient from an economic point of view.

Submit Error