When the MRT of work hours into grain output is greater than the MRS of work hours into subsistence requirements, then Bruno should decrease Angela’s free time.

When the MRT of work hours into grain output is lower than the MRS of work hours into subsistence requirements, then Angela’s allocation of grain should be increased.

Angela’s most preferred option is where the MRT equates her MRS.

Angela’s reservation indifference curve may not necessarily go through Z.

Angela’s preferred allocation is where her reservation indifference curve crosses the feasible frontier.

The economically feasible set is the area between Angela’s reservation indifference curve and the feasible frontier.

F is not Pareto efficient as the marginal rate of substitution does not equal the marginal rate of transformation at this point.

The relative bargaining power of Bruno and Angela determines the number of hours worked along the Pareto efficiency curve.

Moving from F to any point on line CD is Pareto-improving.

Depending on the slope of the feasible frontier, both Bruno and Angela can be better off at F than at D.

The marginal rate of transformation (MRT) of work hours into grain output is the slope of Angela’s reservation indifference curve, while the marginal rate of substitution (MRS) of work hours into subsistence requirements is the slope of the feasible frontier.

Angela’s most preferred option is where the MRT equates her MRS.

When the MRT of work hours into grain output is greater than the MRS of work hours into subsistence requirements, then Bruno should decrease Angela’s free time.

When the MRT of work hours into grain output is lower than the MRS of work hours into subsistence requirements, then Angela’s allocation of grain should be increased.

In a dictator game, increasing the number of Responders reduces the Proposer’s bargaining power.

In an ultimatum game, increasing the number of Responders reduces the Proposer’s bargaining power.

In a dictator game, the Proposer has all the bargaining power.

In an ultimatum game, the Proposer has all of the bargaining power.