What is a key aspect of Pareto efficiency?
No one can be better off without making someone else worse off
Equal wealth distribution
Maximum productivity
Sustainable development
Answer
Pareto efficiency, also known as economic efficiency, occurs when it is impossible to improve the economic well-being of one individual without making at least one other individual worse off. In other words, Pareto efficiency is achieved when resources are allocated in such a way that no one can be made better off without making someone else worse off.
Mastering Pareto: Exploring the Legacy of Vilfredo Pareto in Sociology and Economics
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