remaining on E it is possible. This process can be continued until Adam's indifference curve is just touching E which occurs at point p in Figure 3.3 The only way to put Adam on a higher indifference curve than A would be to put Eve on a lower one. An allocation such as point P, at which the only way to make one person better off is to make another person worse off, is called Pareto effcient. Pareto efficiency is often used as the standard for evaluating the desirability of an allocation of resources. If the allocation is not Pareto efficient, it is "wasteful" in the sense that it is possible to make someone better off without hurting anybody else, When economists use the word efficient, the usually have the idea of Pareto efficiency in mind.