Why is it difficult to compare two efficient points and decide which one is better?
A)The Pareto efficiency criterion cannot be applied to more than one allocation.
B)Interpersonal comparisons cannot be made scientifically.
C)The criteria for efficiency are subjective.
D)There is no difference between various efficient allocations.

Question

Quizplus · Accepted Answer

Interpersonal comparisons cannot be made scientifically, which means that it is difficult to compare two efficient points and determine which one is better. Efficiency criteria are objective, but the comparisons that must take place to determine which point is superior are subjective in nature. Therefore, it is difficult to select a better point.

Why Is It Difficult to Compare Two Efficient Points and Decide