A change in economic output is potentially efficient
A) if the value of the resulting gains exceeds the value of the resulting losses.
B) if the value of the resulting gains exactly equals the value of the resulting losses.
C) only if no one is made worse off.
D) if the value of the resulting gains is less than the value of the resulting losses.

Question

Quizplus · Accepted Answer

A change in economic output is considered potentially efficient if the value of the gains exceeds the value of the losses, as this suggests that those who gain could in theory compensate those who lose and still be better off, aligning with the concept of Pareto efficiency.

A Change in Economic Output Is Potentially Efficient