|Utility possibility frontier|
The maximum attainable levels of utility for the consumers in an economy given the economy’s endowment and technology. The utility possibility frontier can be constructed by taking each Pareto-efficient allocation and plotting the utility levels of the consumers at that allocation. Varying the allocation traces out the frontier. A point below the frontier is not Pareto efficient. The social optimum is the point on the frontier that maximizes a chosen social welfare function.
|Reference: Oxford Press Dictonary of Economics, 5th edt.|