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(Figure: Crumpets and Tea II) If the Economy Is at Point

Question 35

Multiple Choice

(Figure: Crumpets and Tea II) If the economy is at point B, the input mix is: (Figure: Crumpets and Tea II)  If the economy is at point B, the input mix is:   A)  not Pareto-efficient; a movement to point C or point D would be a Pareto improvement. B)  Pareto-efficient; a movement to any other point would be Pareto-inefficient. C)  not Pareto-efficient; only a movement to point D would be a Pareto improvement. D)  not Pareto-efficient; a movement to point C or point D would be Pareto-inefficient.


A) not Pareto-efficient; a movement to point C or point D would be a Pareto improvement.
B) Pareto-efficient; a movement to any other point would be Pareto-inefficient.
C) not Pareto-efficient; only a movement to point D would be a Pareto improvement.
D) not Pareto-efficient; a movement to point C or point D would be Pareto-inefficient.

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