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2. Indicate whether each of the following statements is true, false, or uncertain, and justify your answer in detail, providing counterexamples when you believe the

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2. Indicate whether each of the following statements is true, false, or uncertain, and justify your answer in detail, providing counterexamples when you believe the statement to be false. (a) If the allocation of resources is Pareto efcient, then everyone has the same marginal rate of substitution. (3 points) (b)A reallocation from a point within the utility possibilities curve to a point on the utility possibilities curve results in a Pareto improvement. (2 points)

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