A given economic state is Pareto-optimal if a policy-change can

make everyone better off
make someone better off and all others worse off
make someone better off and all others worse off
not make anyone better off without making someone worse off

The correct answer is D.

A Pareto-optimal state is one in which it is impossible to make any one individual better off without making at least one individual worse off. In other words, it is a state of economic efficiency in which all resources are being used in the most efficient way possible.

Option A is incorrect because a policy change that makes everyone better off would not be a Pareto improvement, as it would not be possible to make anyone better off without making someone worse off.

Option B is incorrect because a policy change that makes someone better off and all others worse off would not be a Pareto improvement, as it would be possible to make everyone better off by not making the change.

Option C is incorrect because a policy change that makes someone better off and all others worse off would not be a Pareto improvement, as it would be possible to make everyone better off by not making the change.