Which of the following is not a limitation of the Pareto criteria?
A)Almost any policy change will make at least one person worse off.
B)The status quo is lent legitimacy from being the starting point for evaluating social welfare.
C)The criteria cannot tell us if a particular policy change will make all participants better off.
D)The criteria do not allow for the ranking of all possible states of the world.

Question

Quizplus · Accepted Answer

This is not a limitation of the Pareto criteria as it is a criteria for evaluating whether a policy change makes anyone worse off without making someone else better off. The Pareto criteria cannot tell us if a particular policy change will make everyone better off but does not limit the evaluation of the policy change in this way. The other listed limitations of the Pareto criteria are valid.

Which of the Following Is Not a Limitation of the Pareto