Chapter Questions
Is it possible to have a Pareto efficient allocation where someone is worse off than he is at an allocation that is not Pareto efficient?
Is it possible to have a Pareto efficient allocation where everyone is worse off than they are at an allocation that is not Pareto efficient?
True or false? If we know the contract curve, then we know the outcome of any trading.
Can some individual be made better off if we are at a Pareto efficient allocation?
If the value of excess demand in 8 out of 10 markets is equal to zero, what must be true about the remaining two markets?