Answer the following:
a)What is meant by Pareto efficiency? (b)Take an economy with a given level of national wealth.40% of the population own 60% of the wealth.The government redistributes the wealth among the population such that 50% of the population now own 50% of the wealth.Does this redistribution satisfy the Pareto criterion? Is the new distribution more equitable than the previous one? Why?

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The Answer of Answer the following:
a)What is meant by Pareto efficiency? (b)Take an economy with a given level of national wealth.40% of the population own 60% of the wealth.The government redistributes the wealth among the population such that 50% of the population now own 50% of the wealth.Does this redistribution satisfy the Pareto criterion? Is the new distribution more equitable than the previous one? Why?

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