A contract curve:
A)represents the locus of points where the corresponding indifference curves intersect.
B)represents those points where the allocation of goods is Pareto efficient.
C)refers to actual contracts.
D)represents those points where supply equals demand.

Question

Quizplus · Accepted Answer

A contract curve represents those points where the allocation of goods is Pareto efficient, meaning that no individual can be made better off without making someone else worse off. It does not necessarily intersect with indifference curves or refer to actual contracts. It also may not necessarily represent points where supply equals demand.

A Contract Curve