Suppose the Economics Department has a graduation party for its students but as a final test they must show they have learned something about trade. The men are given food when they walk in and the women are given drink. Suppose they have identical preferences where food and drink provide utility U = F?D? . The contract curve in the Edgeworth box using a representative man and woman would be
a. a right angle connecting the lower left corner with the upper right corner.
b. a curve (not necessarily a line) connecting the lower left corner with the upper right corner.
c. a line connecting the lower left corner with the upper right corner.
d. a right angle connecting the upper left corner with the lower right corner.
b
You might also like to view...
The process of asset transformation refers to the conversion of
A) safer assets into risky assets. B) safer assets into safer liabilities. C) risky assets into safer assets. D) risky assets into risky liabilities.
In Commonwealth v. Hunt (1842) the Supreme Court of Massachusetts
a. established a legal minimum wage in manufacturing. b. ruled that union members have the right to strike and push for a closed shop. c. found the Boston Bootmakers' Society guilty of unlawful conspiracy. d. established the 10-hour day as the legal maximum in manufacturing. e. All of the above.