The absolute value of the slope of the production possibilities curve is the

Select one:

a.marginal rate of substitution.

b.contract curve.

c.offer curve.

d.Engel curve.

e.marginal rate of transformation.

Movement from an inefficient allocation to an efficient allocation in the Edgeworth Box will

Select one:

a.increase the utility of all individuals.

b.increase the utility of at least one individual, but may decrease the level of utility of another person.

c.increase the utility of one individual, but cannot decrease the utility of any individual.

d.decrease the utility of all individuals.

The Edgeworth Box should

Select one:

a.lie inside the Production Possibility Frontier.

b.lie partially inside the Production Possibility Frontier.

c.lie completely outside of the Production Possibility Frontier.

d.never touch the Production Possibility Frontier.

Pareto points in the Edgeworth Box are

Select one:

a.found when utility curves are tangent.

b.found when MRS are equal.

c.found when one person cannot be made better off without making another person worse off.

d.all of the above.

e.none of the above.

Suppose that a particular allocation is not Pareto optimal. If there is a voluntary exchange between people to make someone people better off, then:

Select one:

a.everyone else will be worse off.

b.no one else can be worse off.

c.everyone else will be better off also.

d.no one else need be worse off.