A policy by which some parties gain and others lose,but for which the gainers fully compensate the losers is
A) Pareto improving.
B) equitable but inefficient.
C) easily implemented in most circumstances.
D) both inefficient and inequitable.

Question

Quizplus · Accepted Answer

This policy is known as Pareto improving because it results in a net gain for society as a whole, even though some individuals may lose out. This is because the gainers fully compensate the losers, so no one is worse off than they were before. Therefore, it leads to a more efficient allocation of resources without causing any inequity.

A Policy by Which Some Parties Gain and Others Lose,but