he table below is an illustration of Pareto efficiency criterion after the implementation of a state income policy in some selected Ministries .                                Before policy.          After policy Ministry A.          400                          800 Ministry B.          200                         200 Ministry C .         300                           300 Total.                  900                          1300 Required i) a) Is there a Pareto improvement? Why?  b) With reference to the table, explain Pareto optimality. c) Analyse the welfare condition of the Ministries after the income policy. ii) There is a trade-off between equity and efficiency in a perfectly competitive market system. Analyse with the aid of a diagram how efficiency will not be compromised in government’s welfare program.

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