Refer to Figure 16.2.1 above. The curve that connects points E, F and G in the Edgeworth Box illustrates:

A) the only efficient allocation of goods among individuals.
B) all possible efficient allocations of goods among individuals.
C) all equitable distributions of goods among individuals.
D) the only equitable distribution of goods among individuals.

Edgeworth Box

A diagram used in economics to show the distribution of resources and the potential for gains from trade between two individuals or entities.

Efficient Allocation

An optimal distribution of resources where it is impossible to make someone better off without making someone else worse off.

Goods

Tangible products or commodities that can be bought, sold, or traded to satisfy wants or needs.