Question-6 If there is no way to make people better off without making anybody else worse off, this is a Pareto Efficient allocation.

A. True B. False

Question-7 The price of good 1 doubles and the price of good 2 triples. Assume that good 1 on the horizontal index and good 2 is on the vertical axes on the budget line graph. The budget line becomes flatter.

A. True B. False

Question-8 More is better assumption implies that the slope of the indifference curve is negative.

A. True B. False

Question-9 A consumer consumes exactly two goods, and she always spend all of her money. Both of these goods are inferior goods.

A. True B. False

Question-10 If there is no profitable trade opportunities in the market between agents, the allocation in this market is Pareto "Efficient."

A. True B. False