When Considering Trade of Two Goods Between Two People,if One

question 51

Multiple Choice

When considering trade of two goods between two people,if one person has all the endowment of both goods,this allocation

• A) is never on a contract curve.
• B) will result in trade so each person has all of one good.
• C) will result in trade to a equal division of goods between the two people.
• D) is Pareto efficient.

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Definitions:

CAPM

The Capital Asset Pricing Model, a financial theory that describes the relationship between systematic risk and expected return for assets, particularly stocks.

Firm-Specific Factors

Unique characteristics or circumstances affecting a company that can influence its stock's performance, unrelated to the overall market movements.

Common Macroeconomic Factor

Economic variables that affect a broad segment of the economy and consequently can influence the performance and value of financial investments.

Uncertainty

The degree of variability in investment returns, often associated with the lack of predictability in markets and future events.