When Two People Trade Their Initial Endowments to a Point

question 46

True/False

When two people trade their initial endowments to a point on the contract curve,only the level of the endowments will determine the new allocation.

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Definitions:

External Standards

Criteria or benchmarks that originate outside of an individual or process, used for comparison or evaluation purposes.

Internal Standards

The personal criteria or benchmarks one uses for behavior, which are developed based on one’s values and beliefs.

Thematic Apperception Test

A projective psychological test involving a series of ambiguous images presented to an individual, who then tells a story based on each image, revealing underlying motives, feelings, and themes.

Rorschach Test

A psychological test in which subjects' perceptions of inkblots are recorded and then analyzed using psychological interpretation, complex algorithms, or both.