When considering trade of two goods between two people, if one person has all the endowment of both goods, this allocation
A) is never on a contract curve.
B) will result in trade so each person has all of one good.
C) will result in trade to a equal division of goods between the two people.
D) is Pareto efficient.
D
You might also like to view...
The cost of risk is the same for everyone
Indicate whether the statement is true or false
Discuss how economists measure the following: (i) aggregate expenditure, (ii) aggregate income, and (iii) aggregate output
What will be an ideal response?
Think of the quantity theory of money: If M = 200, P = 100, and Q = 10, then V is
a. 20 b. 2 c. 10 d. 5 e. 2,000
A(n) ________ provides guaranteed benefits for those who qualify under government transfer programs such as Social Security or Medicare
a. entitlement program b. excise tax c. continuing resolution d. biennial budget