True or False Moving from allocation A to B is a Pareto impr

True or False: Moving from allocation A to B is a Pareto improvement. (2 points

Suppose that a policymaker can choose Policy option A or B. There are five people in the economy whose consumption of a single composite good under A is (10, 5, 3, 2, 15), and under B is (12, 3, 9, 11, 15).

Solution

A change in allocation is said to Pareto improvement if at least one person is made better off without anyone becoming worse off. Here in moving from allocation A to B, first third and fourth person are made better off while second person is made worse off and so this movement is not pareto improvement.

So the correct answer is false.