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.

---

Definitions:

Psychological Dependence

A condition characterized by an emotional or mental reliance on a substance or behavior, often accompanied by feelings of anxiety or distress when the substance or behavior is not available.

Marijuana

A psychoactive drug derived from the Cannabis plant, used both recreationally and medicinally, affecting mood, perception, and cognitive functions.

Opium

A highly addictive narcotic drug extracted from the seed pods of the opium poppy, used historically for pain relief.

Morphine

A powerful opioid pain medication derived from the opium poppy, used to treat moderate to severe pain by acting directly on the central nervous system.