Pareto efficiency implies
A) everyone in the economy is equally well off.
B) there are no trades that would make someone be?0??0?er off without making someone else worse off.
C) there are still trades that would make one party be?0??0?er off without making someone else worse off.
D) transactions are still taking place in the economy.
E) there is always only one outcome that is efficient.

Question

Quizplus · Accepted Answer

Pareto efficiency means that no further changes can be made to make one person better off without making someone else worse off. Thus, no trades can be made that make someone better off without hurting someone else. Therefore, choice B is correct.

Pareto Efficiency Implies