In the figure given below,the curve TT shows how the allocation of a resource affects the well-being of two individuals,Hank and Monica.
-In Figure 19-1,TT is referred to as:
A)the welfare frontier.
B)the production possibility frontier.
C)the marginal rate of transformation curve.
D)the community indifference curve.

Question

In the figure given below,the curve TT shows how the allocation of a resource affects the well-being of two individuals,Hank and Monica. 
-In Figure 19-1,TT is referred to as:
A)the welfare frontier. 
B)the production possibility frontier. 
C)the marginal rate of transformation curve. 
D)the community indifference curve.

Quizplus · Accepted Answer

The curve TT represents the maximum well-being that can be achieved for both individuals given their preferences and the available resources. This is known as the welfare frontier, making choice (A) the correct answer. The production possibility frontier (B) represents the maximum combinations of two goods that can be produced with a given set of resources, while the marginal rate of transformation curve (C) shows the rate at which one good can be exchanged for another in production. The community indifference curve (D) represents the various combinations of two goods that give the same level of satisfaction to the community as a whole.

In the Figure Given Below,the Curve TT Shows How the Allocation