An allocation of resources is Pareto efficient if it is:
A) possible to make at least one consumer better off without making someone else worse off.
B) possible to make all consumers better off.
C) impossible to make any consumer better off without making someone else worse off.
D) impossible to make any consumer better off without making everyone worse off.

Question

Quizplus · Accepted Answer

An allocation of resources is considered Pareto efficient if it is impossible to make any one individual better off without making at least one individual worse off. This means that the allocation has reached a state where resources cannot be reallocated in a way that improves someone's situation without harming another's, indicating an optimal distribution of resources from a Pareto perspective.

An Allocation of Resources Is Pareto Efficient If It Is