On the Consumption Contract Curve

question 1

Multiple Choice

On the consumption contract curve

• A)supply equals demand of both goods.
• B)all allocations are Pareto optimal.
• C)there will be no further voluntary exchange.
• D)All of these are true.

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Definitions:

Temporary Assistance

Short-term financial or material aid provided to individuals or families in need to help them cope with emergencies or periods of economic hardship.

Needy Families

Households with insufficient income or resources to meet basic living expenses.

Supplemental Security Income

A United States government program that provides financial aid to elderly, blind, or disabled individuals with little or no income to help them meet basic needs for food, clothing, and shelter.

Negative Income Tax

is a proposed system of income support that involves the government providing financial assistance to individuals earning below a certain threshold.