The Concept of Pareto Optimality Is a

question 18

Multiple Choice

The concept of Pareto optimality is a

• A) utopian concept.
• B) useful concept because it guarantees economic equality.
• C) useful concept because it guarantees economic efficiency.
• D) useful concept that carefully balances a society's desires for equality and efficiency.
• E) useful concept because it guarantees economic equity.

---

Definitions:

Cash Dividends

Payments made by a corporation to its shareholder members. It is the share of profits distributed in the form of cash.

Direct Method

A way of preparing cash flow statements where actual cash inflows and outflows from operational activities are listed.

Selling Expenses

Costs incurred directly and indirectly in making sales, including commissions, advertising, and salaries of sales staff.

Administrative Expense

Overhead or general expenses related to the day-to-day running of a business but not directly tied to production.