Once a point on a contract curve has been chosen,
A) it is possible to make both individuals better off.
B) it is possible to make one individual better off only at the expense of the other.
C) there is no change that would make both individuals worse off.
D) it is impossible for both individuals to have more of both goods.

Question

Quizplus · Accepted Answer

Once a point on the contract curve has been chosen, any movement away from this point will only make one individual better off at the expense of the other, as the contract curve represents points of Pareto efficiency where any change to make one party better off would make the other party worse off.

Once a Point on a Contract Curve Has Been Chosen