Suppose that you found a trade that made you better off but no one else would be made worse off. From this information, we can tell that::
A)the new social state is not Pareto optimal
B)the new social state is Pareto optimal
C)the previous social state was not Pareto optimal
D)the previous social state was Pareto optimal

Question

Quizplus · Accepted Answer

If you found a trade that made you better off without making anyone else worse off, it indicates that the previous social state was not Pareto optimal. A Pareto improvement (such as the trade you found) is possible only if the initial state is not Pareto optimal, meaning there are still opportunities to make at least one individual better off without making anyone else worse off.

Suppose That You Found a Trade That Made You Better