5.

Imagine there is an economy with pure exchange with twoindividuals (1 and 2). A, B and C are three points that belong tothe utility possibility frontier (UPF) of the two individuals.

Points	U1	U2
A	2	7
B	5	5
C	7	2

According to the information of the previous table, is thefollowing statement true or false: "The point D (2,5) belong to theUPF"

Question: True or False

A. true

B False

Explain your answer to the previousquestion.

6.

Using the information in question 5, if theSocial Welfare Function (SWF) of this economy is W= U1+ U2. Whichof the points A, B, C or D maximizes the SWF?

In the cell below write the total Social Welfare of the pointthat maximizes the SWF (a number) and in question 7, write theletter of the point that maximizes the SWF.

7.

Write the letter of the point that maximizesthe SWF.