In welfare economics, the condition where it is impossible to make any individual better off without making at least one individual worse off is known as:

💡 Solution & Explanation

Pareto efficiency represents an optimal allocation state where resources cannot be reallocated to improve one person's well-being without worsening another's. In contrast, Nash equilibrium describes a non-cooperative game theory outcome where no player has an incentive to unilaterally deviate from their chosen strategy. Walrasian equilibrium focuses on market-clearing prices where aggregate supply equals aggregate demand across all markets simultaneously.