In the Edgeworth Box Diagram, If the Initial Allocation of Consumer

question 12

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 MRS of each consumer is the same.

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Definitions:

Serotonin

A neurotransmitter involved in the regulation of mood, appetite, and sleep, and implicated in depression when levels are insufficient.

Tardive Dyskinesia

A neurological disorder characterized by involuntary, repetitive body movements, often resulting from long-term use of antipsychotic medication.

Dopamine Receptor Sites

Specific locations on nerve cells in the brain that interact with dopamine to transmit signals related to pleasure, reward, and motor function.

Long-term Use

Refers to the extended duration of applying or engaging with a substance, tool, or practice.