Pareto efficiency occurs:
A)when no possible reorganization of production or distribution can make anyone better off without making someone else worse off.
B)when everyone gets a fair share of the goods produced.
C)when reorganizing the production makes everyone better off.
D)when I am better off and everyone else stays the same.
E)none of the above.

Question

Quizplus · Accepted Answer

Pareto efficiency occurs when no possible reorganization of production or distribution can make anyone better off without making someone else worse off. This means that the distribution of goods and resources is already optimized and any change would lead to a decrease in the well-being of at least one individual. The other options (B, C, and D) do not accurately describe Pareto efficiency.

Pareto Efficiency Occurs