The Pareto criterion for efficiency states that the economy is efficient if:
A)no person can be made worse off.
B)nobody can be made better off.
C)a person can be made better off at the same time as another person is made better off.
D)no person can be made better off without making another person worse off.

Question

Quizplus · Accepted Answer

The Pareto criterion for efficiency indicates that an allocation is efficient if no individual can be made better off without making someone else worse off. This means that any change that harms at least one person while benefiting another does not meet the criterion, highlighting the importance of mutual benefit or at least no detriment to others in resource allocation.

The Pareto Criterion for Efficiency States That the Economy Is