Examlex
What is the significance of CDK?
Pareto Efficient
An economic state where it is impossible to make any one individual better off without making at least one individual worse off.
Initial Endowment
The set of resources or assets that agents possess at the start of an economic analysis or experiment.
Pareto Optimal
A scenario in resource distribution where enhancing the welfare of a single person would lead to a detriment to another person.
Utility Function
A mathematical representation that ranks an individual's preferences for various outcomes, reflecting the level of satisfaction or happiness that different bundles of goods and services provide to the individual.
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