True or false? The Edgeworth box version of inter-personal trade requires the individuals to be in close proximity of one another.
A) True, that way they can see each other's endowments and prices.
B) False, begin in close proximity is not required for mutually beneficial trade to occur in the Edgeworth box.
C) True, the Edgeworth box only works when there folks see eye-to-eye.
D) False, although prices are only valid if they are communicated in person.
Question 2
An income tax provides an incentive to _____.
a. work for large companies
b. increase investment
c. substitute away from being self-employed
d. consume more and save less
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Draw an Edgeworth box for two consumers over two goods