Explanation
In a mixed economy, private decisions are intervened by the government due to which there is problem in price mechanism where prices of a commodities are determined by the forces of demand which involves consumers and supply which involves producers and labours with exception set by government on some basic commodities.
This question gives information about efficiency in resource allocation it is as below: 1)An efficient allocation of resources is: That combination of inputs, outputs such that any change in the economy can make someone better off only by making someone worse off .2) Pareto efficiency or Pareto optimality is a situation that cannot be modified so as to make any one individual or preference criterion better off without making at least or preference criterion worse off. 3) therefore above statement states that 'Pareto Efficiency', 'Pareto Optimality' and 'Allocative Efficiency' are all essentially one and same which denote 'efficiency in resource allocation'.
Please disable the adBlock and continue. Thank you.