An outcome is Pareto efficient if ________.
A) an individual can be made better off without making someone else worse off
B) the benefits of the outcome are equally distributed among all participants
C) no individual can be made better off without making someone else worse off
D) the costs of the outcome are equally shared by all participants

Question

Quizplus · Accepted Answer

Pareto efficiency means that it's impossible to make any individual better off without making someone else worse off. Option A implies that it is possible to make someone better off without harming others, which violates the concept of Pareto efficiency. Option B and D are not relevant to the definition of Pareto efficiency.

An Outcome Is Pareto Efficient If ________