Which of the Following Is True of an Efficient Distribution

question 44

Multiple Choice

Which of the following is true of an efficient distribution of two goods among two individuals?

• A)The efficient distribution of goods is represented by a point off the contract curve.
• B)The individuals' marginal rates of substitution are not equal at an efficient distribution of goods.
• C)If the distribution of two goods is efficient,one person can be made better off without harming the other.
• D)The point of tangency between two indifference curves shows an efficient distribution of goods.

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Definitions:

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Consent

The voluntary agreement to or approval of what is done or proposed by another; an essential element of contracts.

Scienter

A legal term referring to the knowledge of wrongdoing, especially with intent to deceive or defraud.

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