Economics · General Equilibrium and Edgeworth Box
Consider the Edgeworth Box for exchange between two consumers (A and B) and two goods (X and Y). The contract curve is the locus of all Pareto-efficient allocations. Which of the following statements about the contract curve are CORRECT? A. Every point on the contract curve satisfies MRSA(X,Y) = MRSB(X,Y). B. Points off the contract curve are always Pareto inferior to some point on the contract curve. C. Every point on the contract curve necessarily represents equal welfare for A and B. D. The competitive equilibrium (Walrasian equilibrium) always lies on the contract curve. E. Moving along the contract curve from one Pareto efficient point to another always involves a Pareto improvement. Choose the correct answer:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1B, D and E only
- 2A, B, C and D only
- 3A and D only
- 4A, B and D only✓
Correct answer
A, B and D only
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice General Equilibrium and Edgeworth Box MCQs →Want more practice questions on General Equilibrium and Edgeworth Box?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · General Equilibrium and Edgeworth Box