An outcome is considered efficient if
A)it is the best available choice for an individual.
B)as many people as possible are happy about the outcome.
C)it is not possible to make someone better off without making anyone else worse off.
D)everyone makes the same income.
E)there is the smallest difference possible between the highest income earned and the lowest income earned.

Question

Quizplus · Accepted Answer

Efficiency means that the resources are being utilized in the best possible way to maximize the overall welfare of society. In order to achieve efficiency, it should not be possible to make someone better off without making someone else worse off. This is known as Pareto efficiency, which is the most widely accepted definition of efficiency in economics. Therefore, the correct answer is C.

An Outcome Is Considered Efficient If