Question: True or False: -Every point inside the Edgeworth box is one way of splitting labor and capital between the two sectors. -Every point inside the

True or False:

-Every point inside the Edgeworth box is one way of splitting labor and capital between the two sectors.

-Every point inside the Edgeworth box is an efficient allocation of labor and capital between the two sectors.

-Each point on the production possibility frontier corresponds to one point on the production efficiency locus inside the Edgeworth box.

-If the production efficiency locus inside the Edgeworth box is a straight line connecting the two origins, then the production possibility frontier will be a straight line too.

-The terms of trade between two trading partners are inverse of each other.

-The offer curve can be downward sloping if the substitution effect is stronger than the income effect and production effect.

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