\"Because all points on a contract curve are efficient, they are all equally des

Question

"Because all points on a contract curve are efficient, they are all equally desirable from a social point of view." Do you agree with this statement? This statement is A. correct because no one can be made better off unless someone else is made worse off at points along the contract curve. B. O C. 0 D. 0 E. correct because there is no excess supply or excess demand at points along the contract curve. incorrect because the allocation of goods is more equal for all members of society at some points along the contract curve than at others. incorrect because the utility of the least-well-off person is higher at some points along the contract curve than others. all of the above are reasonable answers.

Explanation / Answer

1> A

Reason

In the contact curve, all the points are optimal point, thus it is a socially optimum outcome.

2> A

Reason

The maximum possible utility of two individual at the pareto optimal point is depicted in that frontier.

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