Given below are two statements:
Statement I: Every point on the Contract curve is Pareto efficient because one person could not be made better off without making someone else worse off.
Statement II: Every point on the Contract curve neccessarily indicates equal level of economic welfare for the society.
In light of the above statements, choose the most appropriate answer from the options given below:
1
Both Statement I and Statement II are correct.
2
Both Statement I and Statement II are incorrect.
3
Statement I is correct but Statement II is incorrect.
4
Statement I is incorrect but Statement II is correct.