A Pareto improvement is
A)an action in which the gains to the gainers outweigh the losses to the losers
B)any action that does not harm a third party
C)an action that makes at least one person better off,and no one worse off
D)any action that involves a side payment to a third party
E)the typical outcome of government action

Question

Quizplus · Accepted Answer

A Pareto improvement is an action that makes at least one person better off without making anyone else worse off. It doesn't necessarily have to benefit everyone, but it cannot harm anyone. Pareto improvements are often used to evaluate the efficiency of economic policies or proposals.

A Pareto Improvement Is