If My MRS Between Two Consumer Goods Is 6 and Yours

question 9

Multiple Choice

If my MRS between two consumer goods is 6 and yours is 2

• A)A Pareto preferred allocation does not
• B)A Pareto optimal allocation does not exist
• C)We are off the contract curve
• D)We are on the contract curve

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Definitions:

Accrued Interest

Interest that has been incurred but not yet paid or received in cash.

Notes Receivable

Written promises for amounts to be received by a business, typically recognizable as assets on the balance sheet because they represent a legal obligation for the payer to settle the debt.

Interest Receivable

The amount of interest income that has been earned but not yet received in cash.

Note Receivable

A written promise that signifies an entity or person will receive a specified sum of money at a defined future date.