Use the follwoing figure to answer the questions : Figure 6-1: shows the distribution of steak and wine between Monica and Hank.

-In Figure 6-1,a movement from J to K:
A)is ideal because the steak and wine are more equally divided between Hank and Monica.
B)is preferred to a move from J to H.
C)benefits Hank and harms Monica.
D)harms both Hank and Monica.

Question

Use the follwoing figure to answer the questions : Figure 6-1: shows the distribution of steak and wine between Monica and Hank.

-In Figure 6-1,a movement from J to K:
A)is ideal because the steak and wine are more equally divided between Hank and Monica. 
B)is preferred to a move from J to H. 
C)benefits Hank and harms Monica. 
D)harms both Hank and Monica.

Quizplus · Accepted Answer

Moving from J to K in a typical economic model would indicate that Hank is receiving more of the goods (steak and wine) at the expense of Monica, hence benefiting Hank while harming Monica. This is based on the assumption that the movement represents a reallocation of resources.

Use the Follwoing Figure to Answer the Questions : Figure