A Given Allocation in Edgeworth Box Is Pareto- Optimal If

question 29

Multiple Choice

A given allocation in Edgeworth box is Pareto- optimal if:

• A)it belongs to one of the sides.
• B)it belongs to one of the diagonals of the box.
• C)two indifference curves are tangent at that point.
• D)two indifference curves intersect in that point.

---

Definitions:

Drawer

The party in a financial transaction who writes and signs a check or draft directing a bank to pay the check’s amount to someone else.

Negotiable Instrument

A negotiable instrument is a signed document promising to pay the bearer or assigned holder a specific sum of money, such as checks, promissory notes, and drafts.

Payee

The person or entity to whom a payment is directed or made, typically referred to in financial transactions.

Commercial Paper

Unsecured promissory notes with a fixed maturity of usually less than 270 days, used extensively in the financing of business operations.