When two people are on the contract curve, the allocation of goods
A) cannot be improved.
B) is Pareto efficient.
C) is such that neither individual can be made better off without making the other worse off.
D) All of the above.
D
You might also like to view...
The Federal Reserve's performance in the mid-to-late 1980s, 1990s, and early 2000s has received high marks from economists, even without inflation targeting
Indicate whether the statement is true or false
Under monopolistic competition, firms produce ________ products and have long-run profits that are ________ (net of fixed costs).
A. differentiated; positive B. differentiated; close to zero C. homogenous; positive D. homogenous; close to zero
Rational expectations involve the assumption that
A) market participants make use only of information on the past performance of an asset in determining what they believe its price should be. B) market participants rarely change their minds about the correct price of an asset. C) financial markets are good at increasing liquidity, but poor at transmitting information. D) market participants makes use of all available information.
Producer surplus equals
A) total revenue minus total variable cost. B) total revenue minus the sum of all marginal cost. C) profit plus fixed cost. D) All of the above.