UGC NET
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Eduncle Asked an Mcq
March 2, 2020 12:37 pm
  • UGC NET
  • Economics

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 : 

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  • Eduncle Best Answer

    A movement from state A to state B must be desirable in terms of the Kaldor-Hicks criteria but a return from B to A should not be an improvement on these criteria.

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