4. Which ofthe following is not a market signaling device? A. Guarantees and warranties. (I mark) B. coinsurance and deductibles. C. hedging. D. a college education. 5. If the Ghanaian economy is characterised by two individuals (A and B). two commodities 0' GM Y) and two factors (L and K). general equilibrium ofproduction will occurs when A. (MRSxyM a (MRSxy)B (I M) B. MRTSxy - lePy, C. (MRTSLK)X = (MRTSLKW D. MRTSxy = (MRSXA = (MRSxy)B= PM?!- 6. In the general equilibrium analysis, the transformation curve is derived from (I mark) A. the utility-possibility curve. B. the consumption curve. C. the production contract curve. D. the social welfare function 7. The distribution of two commodities between two individuals is said to be Pareto optimal if A. one individual cannot be made better off without making the other worse off, (1 mi) B. the individuals are on their consumption contract curve, C. the individuals are on their utility-possibility curve, D. all of the above. ll. In a situation in which interest rate is so low that people decide to hold their wealth in money is termed as (1 wk) A. Cash trap B. Liquidity trap C. Inationary gap D. Financial trap