Pareto Optimality Is the Condition in Which

question 65

Multiple Choice

Pareto optimality is the condition in which

• A) the distribution of income is equal.
• B) no change is possible that will make some members of society better off without making at least one other member of society worse off.
• C) firms are forced to internalize the effects of all externalities.
• D) it is possible to make one person better off without making someone else worse off.

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Definitions:

Ethical Dilemma

A situation where an individual faces a choice between two or more morally correct but mutually exclusive actions, challenging their ethical principles.

RADAR Model

A framework for recognizing, avoiding, and defending against reputational damage and ethical failures in organizations.

Groupthink

A mental effect observed in a collective where the pursuit of consensus or uniformity leads to illogical or ineffective choices.

RADAR Model

A framework used in business to Recognize, Avoid, Detect, Answer, and Recover from potential risks or issues.