A curve in the Edgeworth box, which traces out all the efficient trades is called a(n)
A) Pareto curve
B) no-trade curve
C) contract curve

Question

Quizplus · Accepted Answer

The curve that traces out all the efficient trades in an Edgeworth box is called the contract curve. Pareto curve represents the allocation of resources where no individual can be made better off without making someone worse off, while the no-trade curve refers to the set of allocations where trade does not occur due to differences in preferences or endowments.

A Curve in the Edgeworth Box, Which Traces Out All