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Commerce · Q1286

Economics

Graduate and Post Graduate · Commerce · question 1286

Q1286

According to the Kaldor-Hicks compensation criterion, a change in economic policy leads to an improvement in social welfare, if

A.
the gainers can just compensate the losers
B.
the losers can profitably bribe the gainers to induce them to stay in the old position
C.
the gainers can compensate the losers for their loss and still remain better-off themselves than before
Answer
D.
The losers do not oppose the change

Answer: Option C

Solution

Answer: Option C
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