When the Marginal Rates of Substitution [MRSs] for a Given

question 13

Multiple Choice

When the marginal rates of substitution [MRSs] for a given distribution of goods differ for two parties,which of the following is incorrect?

• A)Mutually beneficial trade is possible.
• B)Indifference curves are intersecting.
• C)The efficient outcome is unique.
• D)Trade can make at least one party better off.

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Definitions:

Midclavicular Line

An imaginary line running vertically down the surface of the body passing through the midpoint of the clavicle, often used as a reference in medical examinations.

Heart Sound

The noises (such as lub-dub) generated by the beating heart and the resultant flow of blood through it.

Diaphragm

A dome-shaped muscular partition separating the thorax from the abdomen, playing a major role in breathing.

Stethoscope

A medical instrument used for listening to the sounds generated inside the body.