A Pareto Optimum

question 61

Multiple Choice

A Pareto optimum

• A) can be found in a closed and open economy.
• B) is found where the budget line is tangent to the indifference curve.
• C) is the same as a competitive equilibrium.
• D) is where the consumption line is tangent to the PPF.
• E) the slope of the PPF.

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Definitions:

Marginal Cost

The cost of producing one additional unit of a product or service.

Society's Welfare

The overall well-being and quality of life of a community or society, influenced by economic, social, and environmental factors.

Marginal Cost

The cost added by producing one additional unit of a product or service, a critical factor in economic decision-making.

Society's Welfare

The overall well-being and standard of living of the community or society as a whole.