If a single individual consumes less, her savings will increase; but if everyone consumes less, the result may be lower […]

The disconnect between utility and price in a marketplace. The classic example involves diamonds and water. Diamonds generally cost more […]

According to the Pareto criterion, a desirable attribute of an allocation is that it be Pareto-efficient. See also: Pareto dominant.

Allocation A Pareto dominates allocation B if at least one party would be better off with A than B, and […]

A state in the market such that there is no other way to reallocate resources without making at least one […]

The set of all allocations that are Pareto efficient. Often referred to as the contract curve, even in social interactions […]

An allocation with the property that there is no alternative technically feasible allocation in which at least one person would […]

A change that benefits at least one person without making anyone else worse off. See also: Pareto dominant.

The ratio of the number of people in the labour force to the population of working age. See also: labour […]

The process of two or more entities sharing ownership of a particular business and its assets, profits, or losses.