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:

Forebrain

The part of the brain containing the thalamus, hypothalamus, hippocampus, amygdala, and cerebral cortex.

Midbrain

The part of the brain containing structures that are involved in relaying information between other brain regions and in regulating levels of alertness.

Thalamus

A structure in the forebrain involved in relaying information, especially to the cerebral cortex.

Medulla Oblongata

A section at the lower part of the brainstem controlling vital life functions such as breathing and heart rate.