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In the diagram below, which FIVE statements below are correct?
At point G both Angela and Bruno are earning economic rent.
At any point in the lens-shaped area between the feasible frontier and Angela's indifference curve at least one person is better off than if Angela is at her reservation point Z. So compared to Point Z any point in this area represents a Pareto Improvement on point Z.
Angela does all the work so, whatever the allocation, she never earns any economic rent.
Any point between C and D is pareto-efficient. A point halfway between C and D would be the fairest split, so this would be the best possible outcome.
Angela does all the work so the fairest outcome is when she gets all the output.
Whatever Angela gets, what Bruno gets (his rent as a landlord) is also economic rent.
At any point not on the line between points C and D, either Angela or Bruno, or both, can be made better off.
At any point between C and D total surplus (economic rent earned by Angela and Bruno collectively) is maximised.
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