Figure 16.2.1
-Refer to Figure 16.2.1 above. The curve that connects points E, F and G in the Edgeworth Box illustrates:
A) the only efficient allocation of goods among individuals.
B) all possible efficient allocations of goods among individuals.
C) all equitable distributions of goods among individuals.
D) the only equitable distribution of goods among individuals.

Question

Figure 16.2.1
-Refer to Figure 16.2.1 above. The curve that connects points E, F and G in the Edgeworth Box illustrates:
A) the only efficient allocation of goods among individuals. 
B) all possible efficient allocations of goods among individuals. 
C) all equitable distributions of goods among individuals. 
D) the only equitable distribution of goods among individuals.

Quizplus · Accepted Answer

The curve that connects points E, F and G in the Edgeworth Box illustrates all possible efficient allocations of goods among individuals. It represents the Pareto frontier, which is the set of all possible allocations in which no individual can be made better off without making someone else worse off. Therefore, all efficient allocations will lie on this curve.

Figure 16.2.1 -Refer to Figure 16.2.1 Above. the Curve That Connects Points