Use the following figure to answer the question : Figure 19-1 :
,the curve TT shows how the allocation of a resource affects the well-being of two individuals,Hank and Monica.
-In Figure 19-1,a movement from A to B would represent:
A)a movement from an efficient allocation of resources to an inefficient one.
B)an improvement of Monica's welfare.
C)a movement from an efficient to an inefficient resource allocation.
D)an improvement in Hank's well-being.

Question

Use the following figure to answer the question : Figure 19-1 : 
,the curve TT shows how the allocation of a resource affects the well-being of two individuals,Hank and Monica. 
-In Figure 19-1,a movement from A to B would represent:
A)a movement from an efficient allocation of resources to an inefficient one. 
B)an improvement of Monica's welfare. 
C)a movement from an efficient to an inefficient resource allocation. 
D)an improvement in Hank's well-being.

Quizplus · Accepted Answer

A movement from A to B represents an improvement of Monica's welfare, which is shown by the upward movement along the TT curve. It does not necessarily represent a change in efficiency of resource allocation. Improvement in Hank's well-being cannot be determined from this movement alone.

Use the Following Figure to Answer the Question : Figure