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Figure 16.3.1 -Assume There Are Only Two Individuals in an Economy, Lisa

Question 50

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  Figure 16.3.1 -Assume there are only two individuals in an economy, Lisa and Bart. The utility possibilities frontier for these individuals is given as: 120 = U<sub>L</sub> + U<sub>B </sub> Where U<sub>L</sub> is Lisa's utility and U<sub>B</sub> is Bart's utility. Lisa's current level of utility is 20, Bart's level of utility is 90. This combination is: A)  inefficient. B)  economically efficient. C)  impossible, because it is outside of the welfare frontier. D)  none of the above Figure 16.3.1
-Assume there are only two individuals in an economy, Lisa and Bart. The utility possibilities frontier for these individuals is given as: 120 = UL + UB
Where UL is Lisa's utility and UB is Bart's utility. Lisa's current level of utility is 20, Bart's level of utility is 90. This combination is:


A) inefficient.
B) economically efficient.
C) impossible, because it is outside of the welfare frontier.
D) none of the above

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