As long as net returns are positive, the gainers could compensate the losers and still enjoy a net increase in utility. This notion is called
A)the Hicks-Kaldor criterion.
B)a potential Pareto improvement.
C)both of these answers are correct.
D)neither of these answers is correct.

Question

Quizplus · Accepted Answer

The Hicks-Kaldor criterion and a potential Pareto improvement both refer to situations where the gains from a policy or change can potentially compensate the losers, leading to a net increase in utility.

As Long as Net Returns Are Positive, the Gainers Could