Question

-The Pareto Optimality

Condition of Social Welfare​

Answer 1

Here's your answer :-

Pareto criterion states that if any reorganisation of economic resources does not harm anybody and makes someone better off, it indicates an increase in social welfare. If any reorganisation or change makes everybody in a society better off, it will, according to Pareto, undoubtedly mean increase in social welfare.

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Answer 2

Answer:

here it is!

Explanation:

1. Introduction to Pareto Optimality:

The welfare of a society depends, in the broadest sense, upon the satisfaction levels of all its consumers. But almost every change in the economic state of the society will have favourable effects on some members and unfavorable effects on others.

Evaluation of such a social change is impossible unless the economist is ready to go into interpersonal comparison of utility under some value judgement, which he may not be willing to do. Rather, he will be willing to evalu­ate such changes where at least one person has been better off and no one worse off.

The Italian economist Vilfredo Pareto (1848-1923) said that if a change in the economic state makes at least one individual better off without making anyone worse off, then the change is for the betterment of social welfare, i.e., the change is desirable. In that case, we say that the initial state was Pareto-non-optimal.