The allocation at C Pareto dominates the one at D.

Angela’s marginal rate of substitution is equal to the marginal rate of transformation at all points on the Pareto efficiency curve.

Angela and Bruno are indifferent between all the points on CD, because they are all Pareto efficient.

The mid-point of CD is the most Pareto-efficient allocation.

If the new law limits Angela’s working hours to 8 hours and sets the minimum pay to 6.5 bushels, then the outcome will be C.

If the new law limits Angela’s working hours to 10 hours and sets the minimum pay to 4.5 bushels, then the outcome will be D.

If the new law sets the minimum pay to 4.5 bushels, then the outcome will be I.

If the new law limits Angela’s working hours to 4 hours, then the outcome will be F.

The equilibrium outcome is the socially optimal outcome.

In the situation where both Alexandria and Bob put in effort, Alexandria does not have an incentive to deviate.

In the equilibrium outcome, they both end up with a net income of £80 each.

If Bob chooses to Not Work, he will definitely end up with a net income of £120.

A dominant strategy is a strategy that takes away the other player’s power to choose.

A dominant strategy is a strategy that yields the highest payoff irrespective of the other player’s decision.

A dominant strategy is a strategy with which you can always win.

A dominant strategy is a strategy that is sometimes beneficial to you.