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Please, answer the questions with comprehensive and use graphic if necessary State whether the following statements are True, False, or Uncertain. Credits will only be
Please, answer the questions with comprehensive and use graphic if necessary
State whether the following statements are True, False, or Uncertain. Credits will only be given for answers with explanations. Use graphs when necessary. 1. In an Edgeworth box, the Pareto Set will be the diagonal line of the box when the goods X and Y are perfect substitutes with the slopes of indifference curves for individual A are of the same slopes of those of individual B. 2. In an Edgeworth box, the Pareto Set will be the upper part and the left part of the Edgeworth box when the goods X and Y are perfect substitutes with the slopes of indifference curves for individual A are steeper than that of individual B. 3. In an Edgeworth box, the Pareto Set will be the sides of the box when the goods X and Y are perfect complements with the ratio of consumption 1:1. 4. When there is a tax on wage, then individuals will tend to work more. 5. Efficiency and equity are always at oddsStep by Step Solution
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