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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

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 efficient, 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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