In the Edgeworth Box Diagram If the Initial Allocation of Consumer

question 41

Multiple Choice

In the Edgeworth box diagram if the initial allocation of consumer goods is off the contract curve then we can be sure that

• A)Both parties can be made better off
• B)Trade will occur if allowed and transactions costs are high
• C)The initial allocation is unfair
• D)The initial allocation is irrelevant

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Definitions:

Margin of Error

The maximum expected difference between the true population parameter and a sample estimate of that parameter.

Mean

The average of a set of numbers, calculated by adding all the values together and dividing by the number of values.

T Distribution

A probability distribution used in statistical analysis that compares sample data to the standard normal distribution, especially useful when the sample size is small.

Population Standard Deviation

The standard deviation of a set of values that includes an entire population.