Once we move away from any allocation on the contract curve,

Name: Once we move away from any allocation on the contract curve,
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Question

Quizplus · Accepted Answer

The contract curve represents the set of allocations that are Pareto efficient, meaning that any move away from it will result in at least one person being worse off without making anyone better off. Thus, moving away could either make one person better off and the other worse off, or both persons worse off, making both A and B correct.

Once We Move Away from Any Allocation on the Contract