9. __________is a locus of the various physically attainable utility combinations of two persons
when the factor endowment, state of technology and preference orders of the individuals are
given.

10. The point of __________ is the highest possible state of social welfare which the society can
attain given the factor endowments and the current technology.

6. According to the Marginal conditions of Pareto Optimum, “The ________ between any two
goods must be the same for every individual who consumes them both.”

7. _________ conditions require that all indifference curves are convex to the origin and all transformation curves concave to it.

8. In the view of Compensation Principle, _________ has given his criterion from the loser’s point of
view, while _________ had formulated his criterion from gainer’s point of view.

2. _____________is a position from which it is impossible to make anyone better off without making
someone worse off by any reallocation of resources of inputs and outputs.

1. “External economies and diseconomies can lead to a misallocation of resources even in the world of
perfect competition.” is the view of

4. According to ___________ welfare criterion, if a certain change in economic organization or policy
makes some people better off and other worse off, then that change will increase social welfare if
those who gain could compensate the losers and still be better off than before.

5. Marshall’s approach to Stable conditions of equilibrium is the price -dependent approach which depends on __________ movements.

3. Which of the following are the marginal condition that was laid out by Hicks and Lerner for Pareto
Optimum?
a. Indifference curves are convex to origin
b. Optimum allocation of factors
c. Transformation curves are concave
d. Optimum direction of production