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Questions and Answers
Which economist is Pareto efficiency named after?
Which economist is Pareto efficiency named after?
- Karl Marx
- John Maynard Keynes
- Adam Smith
- Vilfredo Pareto (correct)
What is a Pareto improvement?
What is a Pareto improvement?
- A situation where some agents will lose and no agents will gain
- A situation where everyone gains
- A situation where some agents will gain and no agents will lose (correct)
- A situation where everyone loses
What is a Pareto-dominated situation?
What is a Pareto-dominated situation?
- A situation where some agents will gain and no agents will lose
- A situation where there exists a possible Pareto improvement (correct)
- A situation where everyone loses
- A situation where there is no scope for further improvement
What is the Pareto front?
What is the Pareto front?
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What is Pareto optimality?
What is Pareto optimality?
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Study Notes
Pareto Efficiency and Related Concepts
- Pareto efficiency is named after Vilfredo Pareto, an Italian economist.
Pareto Improvement
- A Pareto improvement is a change that makes at least one individual better off without making anyone else worse off.
Pareto-Dominated Situation
- A Pareto-dominated situation occurs when there exists a feasible alternative that is preferred by all individuals.
Pareto Front
- The Pareto front is a set of optimal solutions that represent the best possible trade-offs between different objectives.
Pareto Optimality
- Pareto optimality is a state in which resources are allocated in an optimal way, meaning that it is impossible to make one individual better off without making someone else worse off.
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Description
Test your knowledge of Pareto efficiency, Pareto optimality, and their relationship to economic efficiency and income distribution in this quiz. Learn about Vilfredo Pareto and the key concepts associated with his studies.
