Question
1.
2.
3.
4.
Answer (Detailed Solution Below)
Option 1 : a stable situation in which individually rational choices produce a collectively ruinous outcome.
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Detailed Solution
सही उत्तर a stable situation in which individually rational choices produce a collectively ruinous outcome. है।
Key Points
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prepsnap.in • Part -AQuestion:
In the passage, the phrase "perverse equilibrium" refers to
1.
a stable situation in which individually rational choices produce a collectively ruinous outcome.
2.
a temporary imbalance that corrects itself through market forces.
3.
a government policy that deliberately harms small farmers.
4.
an ecological cycle that restores aquifers naturally.
Correct Answer: a stable situation in which individually rational choices produce a collectively ruinous outcome.
The passage describes farmers responding rationally to incentives while aquifers deplete and the poorest lose access - a stable but damaging outcome of rational individual behaviour, which is option (a).
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