Joe and Rita Each Have Some Milk and Cookies (Milk

question 70

Multiple Choice

Joe and Rita each have some milk and cookies (Milk on the horizontal axis) .Joe's MRS of cookies for milk is 2.Rita's MRS of cookies for milk is 4.Which of the following statements is TRUE?

• A) No gains from trade are possible.
• B) Both Rita and Joe can be made better off if Rita gives Joe some cookies in exchange for milk.
• C) Rita and Joe are on the contract curve.
• D) Both Rita and Joe can be made better off if Joe gives Rita some cookies in exchange for milk.

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Definitions:

Maryland Act

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An African American who became one of the first African property owners and one of the first to have his right to own a slave legally recognized in the British American colonies.

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An African writer and abolitionist who gained freedom from slavery and wrote an autobiography detailing his experiences, significantly influencing the abolitionist movement in Britain.