Every Allocation on the Contract Curve Is Pareto Optimal

question 3

True/False

Every allocation on the contract curve is Pareto optimal.

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Definitions:

DR-CAFTA

The Dominican Republic-Central America Free Trade Agreement, aimed at reducing tariffs and promoting trade and economic integration between the United States and specific Central American countries.

Largest Economy

The country or region with the highest gross domestic product (GDP) or economic output in the world.

Costa Rica

A Central American country known for its diverse ecosystems, including rainforests, beaches, and biodiversity, as well as a strong commitment to environmental preservation.

Central America Free Trade Agreement

A trade agreement aiming to reduce trade barriers and increase commerce between the United States and Central American countries.