Consider point a in the edgeworth box does point a

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30.Consider point A in the Edgeworth box. Does point A satisfy the condition of exchange efficiency?a.a)Yesb.b)Noc.c)Yes, as long as point A does not represent the initial endowments of goods for the two players.d.d)Cannot be determined from the figure.Ans: D
Difficulty: MediumHeading: The Efficiency of Competitive MarketsLO 5 Apply the general equilibrium theory to explore the efficiency of resource allocation.a.31.In an Edgeworth box the line through all of the points that represent efficient allocations of twogoods is called
Difficulty: EasyHeading: The Efficiency of Competitive MarketsLO 5 Apply the general equilibrium theory to explore the efficiency of resource allocation.a.32.In an Edgeworth box, apples are measured along the horizontal axes, and oranges are measured along the vertical axes. Player 1 is in the lower left-hand corner; player 2 is in the upper right-hand corner. Player 1 likes apples but gets no utility from the consumption of oranges. Player 2 likes oranges but gets no utility from the consumption of apples. In the initial endowment, Player 1 has 5 apples and 4 oranges. Player 2 also has 5 apples and 4 oranges. What is the contract curve?
Difficulty: HardHeading: The Efficiency of Competitive MarketsLO 5 Apply the general equilibrium theory to explore the efficiency of resource allocation.a.33.If each of the two players represented in an Edgeworth box has Cobb-Douglas indifference curves, then the contract curve will be
Difficulty: MediumHeading: The Efficiency of Competitive MarketsLO 5 Apply the general equilibrium theory to explore the efficiency of resource allocation.a.34.Identify the truthfulness of the following statements.The contract curve must contain the initial endowment point.All points on the contract curve are economically efficient.a.a)Both I and II are true.b.b)Both I and II are false.c.c)I is true; II is false.d.d)I is false; II is true.Ans: D
Difficulty: EasyHeading: The Efficiency of Competitive MarketsLO 5 Apply the general equilibrium theory to explore the efficiency of resource allocation.a.35.In an analysis involving an Edgeworth box, the contract curve contains

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