Question

Given below are two statements: One is labelled as Assertion A and the other is labelled as Reason R:
Assertion A: Pareto optimality implies that an allocation of resources is inefficient when it is possible, through some change in the allocation of resources to benefit at least one person without making anyone else worse off.
Reason R: Pareto efficiency takes into account distributive justice and compensation of people affected negatively.
In the light of the above statements, choose the most appropriate answer from the options given below:

• A. Both A and R are correct and R is the correct explanation of A
• B. Both A and R are correct but R is NOT the correct explanation of A
• C. A is correct but R is not correct
• D. A is not correct but R is correct

Answer 1

The Correct Option is B

The correct option is(B): Both A and R are correct but R is NOT the correct explanation of A