Which of the following would not be a Pareto superior move?
A)A market exchange.
B)A group that unanimously decides to undertake an activity.
C)A group that decides by majority rule to undertake an activity.
D)A contingent contract for a group to undertake an activity at some time in the future.

Question

Quizplus · Accepted Answer

A Pareto superior move is one that benefits at least one person without harming anyone else. In a majority rule decision, there is a possibility that some members of the group may be harmed by the decision, making it not Pareto superior. The other options are all examples of Pareto superior moves – market exchange benefits both parties involved, a unanimous decision means everyone agrees and benefits, and a contingent contract can be designed to benefit both parties.

Which of the Following Would Not Be a Pareto Superior