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1. What is the value judgment that underpins Pareto efficiency? Who might find it objectionable? Why?

2. A new free-trade agreement increases total surplus. Everyone agrees on that. But your friend says, "Big deal, I am not supporting any such policy!" Can you argue why he should? Why he should not?

3. Is there a paradox in arguing against a Pareto improvement on the basis of the resulting distribution of income?

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