Gains from trade cannot occur when

Select one:

a.

marginal rates of substitutions differ across people.

b.

marginal rates of substitution are equal across people.

c.

indifference curves are convex.

d.

people find themselves off of the contract curve.

Gains from trade will be possible as long as

Select one:

a.levels of utility differ.

b.utility functions differ.

c.marginal rates of substitution differ.

d.endowments differ.

The fact that at the competitive equilibrium nobody can be made better off without making someone else worse off implies that

Select one:

a.the equilibrium is Pareto-efficient.

b.the equilibrium is not Pareto-efficient.

c.the prices need to adjust further.

d.further gains from trade are possible.

In a competitive market, prices adjust until all consumers find themselves

Select one:

a.maximizing utility.

b.on the contract curve.

c.happy with their original endowment.

d.with many opportunities to gain from additional exchange.

A competitive equilibrium is not Pareto efficient if some members of society are unable to afford a necessary good.

Select one:

True

False