Which of the Following Normative Criteria Rejects a Policy Whenever

question 20

Multiple Choice

Which of the following normative criteria rejects a policy whenever there exists an alternative policy that could unanimously defeat it?

• A) Majority rule.
• B) The efficiency criterion.
• C) The Pareto criterion.
• D) The potential Pareto criterion.

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Definitions:

Monetary Outflow

This term refers to the flow of money out of a country, business, or institution, primarily through payments to other countries or purchases of goods and services.

Comparative Advantage

The ability of a country, individual, company, or region to produce a good or service at a lower opportunity cost than competitors, leading to more efficient trade patterns.

Manufactures Textiles

The process of creating fabrics or cloth from various types of fibers and raw materials.

Absolute Advantage

A condition in which a country, individual, or company can produce a specific good at a lower cost in terms of labor and resources than competitors.