Figure 16.3.1
-Refer to Figure 16.3.1 above. The curve in the diagram is called:
A) the contract curve.
B) the utility possibilities frontier.
C) the production possibilities frontier.
D) the production contract curve.

Question

Figure 16.3.1
-Refer to Figure 16.3.1 above. The curve in the diagram is called:
A) the contract curve. 
B) the utility possibilities frontier. 
C) the production possibilities frontier. 
D) the production contract curve.

Quizplus · Accepted Answer

The curve in the diagram is called the utility possibilities frontier, which shows the different distributions of utility or welfare that two or more individuals (or regions, countries, etc.) can achieve in an exchange or allocation scenario, given a fixed amount of resources. It is used in welfare economics to illustrate the concept of Pareto efficiency.

Figure 16.3.1 -Refer to Figure 16.3.1 Above. the Curve in the Diagram