The concept of “EFFICIENCY” as used in mainstream economics

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 reorganization of production can make anyone better off without making someone else worse off
2. An economy is clearly inefficient if ti is inside the production possibility Frontier (PPF)
3. Ar a minimum, an efficient economy is on its Production Possibility Frontier (PPF)
4. The terms such as ‘Pareto Efficiency’ Pareto Optimality’ and ‘Allocative Efficiency’ are all essentially one and the same which denote ‘efficiency in resorce allocation’
Select the correct answer using the code given below :
(a) 1 and 4 only
(b) 1 and 3 only
(c) 2 and 3 only
(d) 1, 2 , 3 and 4

Anurag Mishra Professor Asked on 16th February 2016 in General Knowledge.
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    Answer:  (a) 1 and 4 only 

    Anurag Mishra Professor Answered on 16th February 2016.
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