Question
The 'Compensation Criterion' which says that state A is socially preferable to state B, if those who gain from the change can compensate the loosers and yet end up with surplus welfare gain is attributed to:
The correct answer is
N. Kaldor
Kaldor’s criterion calls a change a potential welfare improvement when the gainers could compensate all losers and still retain a net gain. Actual payment of compensation is not required by the test.
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Important Questions from Economy
- At the time of independence, which sector contributed the largest share to India's national income?
- Which of the following is an example of soft infrastructure?
- Which of the following statements regarding the estimation of India's national and per capita income during the colonial rule is correct?
What was one of the major characteristics of India's economy at the time of independence in 1947?
- The Fiscal Responsibility and Budget Management (FRBM) Act set limits on the fiscal deficit and public debt. What was the fiscal deficit target under the original FRBM Act by 2008-09?
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