Question

A situation is efficient if it is:

a. not possible to find a transaction that will make at least one person better off without harming others.
b. possible to find a transaction that will make at least one person better off without harming others.
c. possible to find a transaction that will make at least one person better off, even if others are made worse off.
d. a market was used to allocated the good or service.

Answer 1

a. not possible to find a transaction that will make at least one person better off without harming others.

Step-by-step explanation:

A Pareto improvement refers to a situation in which a change in allocation of resources helps at least one person without damaging anyone. On the other hand, a Pareto efficient situation is one in which no more Pareto improvements can be made (or where it is not possible to find a transaction that will make at least one person better off without harming others).