If the potential Pareto criterion rejects a policy change,then the efficiency criterion will reject it as well.

Question

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The potential Pareto criterion requires that a policy change should not make any individual worse off without making someone else better off. The efficiency criterion requires maximizing the overall level of social welfare. If a policy change fails the Pareto criterion, it means that there is someone who will be worse off if the policy is implemented. This also implies a decrease in overall social welfare, and therefore the efficiency criterion would reject such a policy change as well.

If the Potential Pareto Criterion Rejects a Policy Change,then the Efficiency