The Pareto criterion says that the general equilibrium of an economy is efficient:

Question

Quizplus · Accepted Answer

The Pareto criterion states that an allocation of goods is efficient if no individual can be made better off without making someone else worse off. Therefore, option B correctly represents the Pareto criterion. Option A refers to the principle of democratic decision-making, not efficiency. Option C assumes that efficiency holds at all times, which may not be true. Option D implies that the Pareto criterion can be violated if someone wants a different equilibrium, but this is not the case.

The Pareto Criterion Says That the General Equilibrium of an Economy