If one is inside the production possibilities frontier
A) More of both goods can not be produced
B) The allocation is not Pareto optimal
C) No one could be made better off
D) The economy is producing beyond its potential
Correct Answer:
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Q4: The consumption contract curve
A)Is always a straight
Q5: According to the text, if a policy
Q6: In competitive equilibrium
A)The MRS of all consumers
Q7: An allocation of resources is Pareto optimal
Q8: If my MRS between two consumer goods
Q10: In equilibrium with an Edgeworth production box
A)MPK/MPL
Q11: A Pareto preferred transaction is one where
A)The
Q12: Given an initial allocation of resources that
Q13: According to the invisible hand theorem, as
Q14: On the consumption contract curve
A)All indifference curves
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