2013 · Q27
27. In a perfectly competitive economy production and consumption will both be Pareto optimal if the economy operates at a point where :
General KnowledgeEconomics
- AThere is general equilibrium
- BOutput levels are below equilibrium
- COutput levels are above equilibrium
- DConsumption is less than output
Explanation
Pareto optimality holds at general equilibrium; the official key marks A.