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?