Which of the following is consistent with a Pareto improvement?
A) a federal restriction on the hours an individual can work
B) there is an increase in the sales tax levied on particular goods
C) a trade that would make one party be?0??0?er off,and the other equally well off
D) a trade that would make one party be?0??0?er off,and the other party worse off
E) one party having incomplete information about the market

Question

Quizplus · Accepted Answer

A Pareto improvement is a change that makes at least one person better off and no one worse off. A trade that would make one party better off and the other equally well off satisfies this condition. Choices A, B, D, and E do not involve a Pareto improvement as they make someone worse off.

Which of the Following Is Consistent with a Pareto Improvement