The _____ identifies the different distributions of goods across consumers that are efficient.
A)production possibility frontier
B)contract curve
C)indifference curve
D)offer curve

Question

Quizplus · Accepted Answer

The contract curve represents the set of allocations where both consumers are at a point of tangency of their respective indifference curves. This means that any allocation on the contract curve is efficient, as it is not possible to make one consumer better off without making the other worse off. Therefore, the contract curve identifies the different distributions of goods across consumers that are efficient.

The _____ Identifies the Different Distributions of Goods Across Consumers