Gains from Trade Can Only Occur When

question 10

Multiple Choice

Gains from trade can only occur when

• A) marginal rates of substitutions differ across people.
• B) marginal rates of substitution are equal across people.
• C) indifference curves are convex.
• D) people find themselves on the contract curve.

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Definitions:

Groupthinking

A psychological phenomenon where the desire for harmony or conformity in a group results in an irrational or dysfunctional decision-making outcome.

Silent Brainstorming

is a technique where individuals generate ideas independently and silently before sharing them with the group.

Traditional Brainstorming

A creative group activity designed to generate a large number of ideas for the solution to a problem.

Information-Sharing

The exchange or provision of data, knowledge, or insights among individuals, organizations, or systems.