ECO2003F Tutorial 11_questions_09

ECO2003F Tutorial 11_questions_09 - ECO2003F Tutorial...

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ECO2003F Tutorial: General equilibrium and trade SECTION A: MULTIPLE CHOICE QUESTIONS 1. An allocation of resources is Pareto optimal if A. It is possible to make one person better off without making at least some others worse off B. No further mutually beneficial exchange is possible C. It is below the contract curve D. It is possible to make everyone else better off 2. In equilibrium with an Edgeworth production box A. MPK/MPL = PL/PK B. One is on the contract curve C. The production of one good could increase without decreasing the production of the other D. MPK*MPL = PL*PK E. None of the above are true 3. In competitive equilibrium A. The MRS of all consumers is the different B. The MRT of all producers is the same C. It is impossible to make anyone better off D. The MRT of all producers is different 4. In the Edgeworth box shown below, A. There is more food demanded than is available B. There is more clothing demanded than is available C. The relative prices shown will bring equilibrium without changing D. There is less food demanded than is available
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This note was uploaded on 05/23/2011 for the course ECON 203 taught by Professor Jules during the Spring '11 term at University of Cape Town.

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ECO2003F Tutorial 11_questions_09 - ECO2003F Tutorial...

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