Pareto optimality refers to a situation where no individual can be made better off without making someone else worse off. In other words, any change that benefits one individual must come at the expense of another. On the other hand, efficiency refers to the state in which resources are allocated in a way that maximizes overall welfare or satisfaction. This means that an efficient allocation of resources does not necessarily have to adhere to the constraints of Pareto optimality, as it simply aims to achieve the best overall outcome without any consideration for potential trade-offs between individuals.
