The concept of Pareto optimality:
A)helps philosophers assess what is just in terms of distribution of incomes.
B)represents an yardstick used to measure how well the markets distribute income.
C)is synonymous with economic efficiency.
D)brings about the consensus on what is fair in terms of distribution of wealth and income.

Question

Quizplus · Accepted Answer

Pareto optimality is a concept in economics that represents a state where no one can be made better off without making someone else worse off. It is commonly used as a criterion to assess economic efficiency, rather than as a measure of what is just or fair in terms of income or wealth distribution. Therefore, the correct choice is C - Pareto optimality is synonymous with economic efficiency. Choices A, B, and D are incorrect, as they do not accurately reflect the meaning of Pareto optimality.

The Concept of Pareto Optimality