The Contract Curve in an Edgeworth Box Diagram Illustrates

question 9

Multiple Choice

The contract curve in an Edgeworth Box diagram illustrates

• A) the only efficient allocation of goods among individuals.
• B) all possible efficient allocations of goods among individuals.
• C) all equitable distributions of goods among individuals.
• D) the only equitable distribution of goods among individuals.

---

Definitions:

Sensory Input

Information that is received by the senses (such as sight, sound, touch, taste, and smell) and then interpreted by the brain.

Perceptual Constancy

A psychological phenomenon in which the perception of an object remains unchanged despite variations in its presentation or viewing conditions such as lighting, angle, or distance.

Proximal Stimuli

The stimuli that directly interact with the senses, as opposed to distal stimuli which are objects and events in the environment that provide information for the proximal stimuli.

Distal Stimuli

Objects or events in the external world that provide the basis for the perception of our immediate environment, as opposed to the sensory inputs that they generate.