-Pareto optimality and Pareto superiority _____.
A)concern only monetary gains and losses
B)compare utility gains with utility losses
C)do not require interpersonal utility comparisons
D)are equivalent to the concept of economic efficiency

Question

-Pareto optimality and Pareto superiority _____.
A)concern only monetary gains and losses 
B)compare utility gains with utility losses 
C)do not require interpersonal utility comparisons 
D)are equivalent to the concept of economic efficiency

Quizplus · Accepted Answer

Pareto optimality and Pareto superiority do not require interpersonal utility comparisons, meaning that one person's gains do not have to come at the expense of another person's losses. They simply compare whether it is possible to make someone better off without making someone else worse off, in a given situation. This concept is not limited to monetary gains or losses and is not equivalent to economic efficiency.

-Pareto Optimality and Pareto Superiority _____