Which of the following statements are true with respect to the concept of EFFICIENCY as used in mainstream economics? 1. Efficiency occurs when no possible reor

Question

Which of the following statements are true with respect to the concept of EFFICIENCY as used in mainstream economics?
1. Efficiency occurs when no possible reorganisation of production can make anyone better off without making someone else worse off.
2. An economy is clearly inefficient if it is inside the Production Possibility Frontier (PPF).
3. At a minimum, an efficient economy is on its Production Possibility Frontier (PPF)
4. The terms such as 'Pareto Efficiency' and 'Allocative Pareto Optimality Efficiency' are all essentially one and the same which denote 'efficiency in resource allocation'
Select the correct answer using the codes given below

Accepted Answer

(D) 1.2, 3 and 4

Answer

(A) 1 and 4

Answer

(B) 1 and 3

Answer

(C) 2 and 3