Use the following statements to answer this question: I. Following the properties of indifference curves, the utility possibilities frontier should be convex to (bowed into toward) the origin.
II) The slope of the utility possibilities frontier equals -1 times the slope of the contract curve.

A) I and II are true.
B) I is true and II is false.
C) II is true and I is false.
D) I and II are false.

Indifference Curves

Graphical representations used in economics to show combinations of two goods that provide a consumer with the same level of satisfaction.

Utility Possibilities Frontier

A graphical representation that shows the maximum amount of two goods that an economy can produce using all its resources efficiently, given the technology.

Contract Curve

In an Edgeworth box diagram, it represents the set of optimal distribution points for two traders based on their preferences.