CAIE A-Level Economics 7.3.3 Pareto optimality
Practise testing whether reallocations are Pareto improvements and linking Pareto optimality to efficient resource allocation.
- Syllabus
- 2026–2028
- Course
- Economics 9708
- Level
- A2
Exam points
- judge whether a reallocation makes someone better off without making others worse off
- interpret goods-allocation tables or economy scenarios for Pareto improvement or optimality
7.3.3—Pareto optimality question 1
[Maximum number: 1]
What is most likely to lead to a Pareto-optimal outcome?
A
offering bulk-buy discounts to customers who join a loyalty scheme
B
switching labour from producing low-priced products to producing high-priced products
C
switching production from labour-intensive products to capital-intensive products
D
training low-skilled workers to operate machinery effectively
D
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