If one party can gain from a transaction,without harming any other party,
A) then the transaction must be a Pareto improvement.
B) then the transaction is not a Pareto improvement.
C) the government must intervene to make the transaction occur.
D) the transaction will be forced on one of the parties.
E) then the current economy is at the Pareto efficient outcome.

Question

Quizplus · Accepted Answer

A Pareto improvement occurs when at least one party can be made better off without harming any other party. Therefore, if one party can gain from a transaction without harming any other party, it meets the definition of a Pareto improvement.

If One Party Can Gain from a Transaction,without Harming Any