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,the curve TT shows:
A)a single and unique distribution of resources that jointly maximizes Hank's and Monica's well-being.
B)all the efficient resource allocations that are attainable.
C)all the points where the marginal rates of substitution between goods are equal for both Hank and Monica.
D)all the points that maximize the individual well-being of Hank and Monica.

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,the curve TT shows:
A)a single and unique distribution of resources that jointly maximizes Hank's and Monica's well-being. 
B)all the efficient resource allocations that are attainable. 
C)all the points where the marginal rates of substitution between goods are equal for both Hank and Monica. 
D)all the points that maximize the individual well-being of Hank and Monica.

Quizplus · Accepted Answer

The curve TT in Figure 19-1 shows all the efficient resource allocations that are attainable, which means it represents the combinations of goods that provide the highest level of satisfaction for both Hank and Monica given the available resources. This curve is also known as the production possibility frontier, which shows the trade-offs between various goods that can be produced efficiently with the resources available. Therefore, option B is the correct choice.

Use the Following Figure to Answer the Question : Figure