Multiple Choice
Two individuals, A and B, consume two goods, and . Consumer A initially has 3 units of and 2 units of . Consumer B initially has 5 units of and 6 units of . Also, for Consumer A the and for Consumer B the . Does this initial allocation of and represent an efficient allocation?
A) Yes
B) No, because both consumers could be made better off by giving A more and less
.
C) No, because both consumers could be made better off by giving A more and less
.
D) Cannot be determined from the given information.
Correct Answer:

Verified
Correct Answer:
Verified
Q6: Gains from free trade are realized when
Q13: When a fixed stock of inputs cannot
Q19: An allocation of goods and inputs in
Q30: Walras' Law states that general equilibrium determines
Q31: Use the following table to answer
Q35: The idea of comparative advantage tends to
Q36: The prices of complementary goods tend to
Q37: The prices of substitute goods tend to
Q43: The slope of the Production Possibilities Frontier
Q48: The significance of the First Fundamental Theorem