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Problem regarding the distributive efficiency

Ted and Willy are eating lunch. Ted has a Snowball and Willy a Ding Dong for dessert. Strongly prefer both Ding Dongs. A required trade of Willy's Ding-Dong for Ted's Snowball would be likely to enhance: (w) distributive efficiency as Fred is better off. (x) allocative efficiency as Fred's gain exceeds Willy's loss. (y) production efficiency as Willy does not gain throguh the transaction. (z) Ted's happiness, but comparing his gain to Willy's loss is essentially normative.

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