The Pareto superiority concept _____.
A)is equivalent to utilitarianism
B)is equivalent to equilibrium in a perfectly competitive market
C)compares two different states of the world
D)looks at a state of the world and judges its superiority

Question

Quizplus · Accepted Answer

The Pareto superiority concept compares two different states of the world and determines if one state is better than the other in terms of how it affects individuals' welfare. Utilitarianism is a different concept that focuses on maximizing overall happiness or welfare, while equilibrium in a perfectly competitive market is a different concept again that is related to the efficient allocation of resources. Option D is incorrect because it does not take into account the comparison aspect of Pareto superiority.

The Pareto Superiority Concept _____