Which type of transaction is NOT Pareto improving?
A) Some parties gain and some parties lose, and the gains are larger than the losses.
B) Some parties gain and some parties lose, but the gainers fully compensate the losers for their losses.
C) Some parties gain and no one loses.
D) All affected parties gain.

Question

Quizplus · Accepted Answer

A transaction is not Pareto improving if some parties lose and the gains of others do not necessarily make up for these losses in a way that leaves no one worse off. Choices B, C, and D all describe scenarios where no party ends up worse off, which aligns with the concept of Pareto improvement.

Which Type of Transaction Is NOT Pareto Improving