Which of the Following Is True of the Contract Curve

question 26

Multiple Choice

Which of the following is true of the contract curve?

• A)All points on the contract curve are potential points of equilibrium but not all are efficient.
• B)All points on the contract curve are potential points of equilibrium and are efficient.
• C)A movement from one point on the contract curve to another reduces total welfare.
• D)The midpoint of the contract curve is the most efficient point because it is the most equitable.

---

Definitions:

Anonymity

The condition of being anonymous, where an individual's identity is unknown or concealed.

Leadership Dimension

An element or aspect that contributes to the complex role of guiding or directing a group, organization, or nation.

Initiating Structure

Organizing and defining relationships in the group by activities such as assigning specific tasks, specifying procedures to be followed, scheduling work, and clarifying expectations of team members.

Self-fulfilling Prophecy

A belief or expectation that indirectly or directly causes itself to become true, through the behavior it inspires.