A competitive equilibrium is Pareto optimal if there is no way to rearrange or to reallocate goods so that
A) anyone can be made better off.
B) no one can be made worse off.
C) someone can be made better off without making someone else worse off.
D) someone can be made better off without making everyone else worse off.
C
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Consumer concern about "blood diamonds," a diamond mined in a war zone and sold to finance an insurgency, invading army's war efforts, or a warlord's activity, may have caused a drop in De Beers sales
a. True b. False
Four students, Tony, Steve, Natasha, and Bruce, are arguing the best strategy for the development of a nation. According to Tony, the country should try to achieve low rates of inflation and unemployment simultaneously. According to Steve, a country can never achieve low levels of unemployment and inflation simultaneously. Natasha argues that firms should lower the wages during recession rather
than laying off workers. Bruce disagrees, believing that the only way a country can achieve economic growth is by increasing the interest rate, which will increase the amount of investment and help the economy to grow. The person with the best strategy is _____. a. Bruce b. Tony c. Natasha d. Steve