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:

Dominance Facet

An aspect of personality that relates to control, power, and assertiveness over others in social relationships.

Extraversion

A personality trait characterized by high levels of enthusiasm, sociability, and assertiveness.

Self-Esteem

A person’s attitude toward him- or herself.

Lowest Self-Esteem

Refers to the lowest level of an individual's appraisal of their own worth or value.