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
Correct Answer:
Verified
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