Use the following statements to answer this question: I. Following the properties of indifference curves, the utility possibilities frontier should be convex to (bowed into toward) the origin.
II) The slope of the utility possibilities frontier equals -1 times the slope of the contract curve.
A) I and II are true.
B) I is true and II is false.
C) II is true and I is false.
D) I and II are false.

Question

Quizplus · Accepted Answer

The utility possibilities frontier is typically concave to the origin, not convex, and the slope of the utility possibilities frontier does not equal -1 times the slope of the contract curve.

Use the Following Statements to Answer This Question: I