A Pareto Optimal Allocation of Resources Implies That

question 23

Multiple Choice

A Pareto optimal allocation of resources implies that:

• A)only one person can be made better off through trade.
• B)no person can be made better off through trade.
• C)no person can be made better off through trade,without harming another person.
• D)through any feasible change in resource allocation,it is possible to make someone better off without leaving someone else worse off.

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Definitions:

Vertical Hierarchy

An organizational structure where power and authority are concentrated at the top, and decisions flow downward.

Downward Communication

A form of organizational communication that flows from higher levels of the organization to lower levels, typically used for giving instructions, providing feedback, or conveying decisions.

Horizontal Specialization

The division of work in an organization where tasks are divided among departments or teams based on expertise or functions, leading to specialization in certain areas.

Corporate Charter

A legal document that establishes a corporation, outlining its structure, purpose, and the rights and responsibilities of its members.