If Frank's and Jan's Indifference Curves Intersect at the Endowment

question 54

Multiple Choice

If Frank's and Jan's indifference curves intersect at the endowment point A,then:

• A)A is on the contract curve.
• B)trade will make one of them better off while making the other one worse off.
• C)both indifference curves would cross the contract curve before they intersected again.
• D)A can be on either Frank's or Jan's contract curve but not both.

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Definitions:

Loudness

A subjective perception of the intensity of a sound, influenced by its amplitude and frequency, and how it is received and interpreted by the ear and brain.

Frequency

How often something happens within a certain period or within a specific sample.

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A perceptual phenomenon where the moon appears larger when it is closer to the horizon than when it is higher in the sky.

Perceived Distance

The subjective experience or estimation of how far away an object is from the observer.