How Economic Efficiency and Social probity achieved through Paretto criteria

Realities the real thing on which everyone in a sovereign state would like to have control over and by doing so they make their life meaningful, productive and functional. Usually it is through intermediation of the regulators and cultural training this is done so in developed Nations states.

Building Paretto efficiency into an economic system makes realities more meaningful and functional in the socio, political and economic spheres of a Nation without which no nation can boast of as Nation state.

Paretto directives:

1)      Marginal rate of substitution of a product A to B by an agent X to to the marginal rate  of substitution of the same products by agent Y should be equal. This means the standard of living must be high and product efficiency should be high. This develops cultural and ethnic homogeneity and avoids inequity in societies. This delivers the endowment needs of a society for its citizen.

2)      Marginal consumption of energy for product A to product B by a producer X should be equal to the same for product by producer Y. This provides production efficiency.

3)      Marginal utility derived in using physical infrastructures A to B by agent X should be equal to that of the same infrastructure used by agent Y. This provides environmental efficiency. This makes sure that redistribution is efficient as well as risk is shared equitably by Agents to a large extent.

Paretto criterion.

Along with the directives the 3 Paretto criterions are

1)Easy entry and exit for production for Agents in an economy

2)Whatever is produced in the economy should be consumed by all Agents

3)There should be adequate competition in the environment.

If any one of the criterion  is missing then it means that all are missing and the economy is inefficient