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Please, answer the questions with comprehensive and use graphic if necessary

Please, answer the questions with comprehensive and use graphic if necessary

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please, answer the questions with comprehensive and use graphic if necessary

State whether the following statements are True, False, or Uncertain. Credits will only be given for answers with explanations. Use graphs when necessary. 1. In an Edgeworth box, the Pareto Set will be the diagonal line of the box when the goods X and Y are perfect substitutes with the slopes of indifference curves for individual A are of the same slopes of those of individual B. 2. In an Edgeworth box, the Pareto Set will be the upper part and the left part of the Edgeworth box when the goods X and Y are perfect substitutes with the slopes of indifference curves for individual A are steeper than that of individual B. 3. In an Edgeworth box, the Pareto Set will be the sides of the box when the goods X and Y are perfect complements with the ratio of consumption 1:1. 4. When there is a tax on wage, then individuals will tend to work more. 5. Efficiency and equity are always at odds.
Transcribed Image Text:State whether the following statements are True, False, or Uncertain. Credits will only be given for answers with explanations. Use graphs when necessary. 1. In an Edgeworth box, the Pareto Set will be the diagonal line of the box when the goods X and Y are perfect substitutes with the slopes of indifference curves for individual A are of the same slopes of those of individual B. 2. In an Edgeworth box, the Pareto Set will be the upper part and the left part of the Edgeworth box when the goods X and Y are perfect substitutes with the slopes of indifference curves for individual A are steeper than that of individual B. 3. In an Edgeworth box, the Pareto Set will be the sides of the box when the goods X and Y are perfect complements with the ratio of consumption 1:1. 4. When there is a tax on wage, then individuals will tend to work more. 5. Efficiency and equity are always at odds.
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