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

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.

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