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

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

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

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

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.

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

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

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

The equilibrium outcome is the socially optimal outcome.

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 that is sometimes beneficial to you.

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

Consumer B dislikes milk more than Consumer A dislikes it

Given the same amount of chocolates, consumer A is willing to swap one bar of chocolate with a smaller amount of milk than consumer B.

The indifference curves of the two consumers cannot cross.

The price of milk relative to the price of chocolates is higher for consumer A than for consumer B.

The marginal rate of transformation between money and free time when she is working three hours is 60.

She should never consume 7 hours of free time if her indifference curves are downward sloping.

If the marginal rate of substitution between hours of free time and money is equal to 10 when she has 21 hours of free time and 60 pounds, she should consume more free time.

Arya should make cloaks; Sansa should make swords.

Arya should make swords; Sansa should make cloaks.

Both should make cloaks.

Both should make swords.