This topic contains a solution. Click here to go to the answer

Author Question: Adam makes 25,000 per year and Bob makes 45,000 a year, and they both have the same marginal benefit ... (Read 179 times)

JGIBBSON

  • Hero Member
  • *****
  • Posts: 538
Adam makes 25,000 per year and Bob makes 45,000 a year, and they both have the same marginal benefit curve. According to the utilitarian view, if a dollar is transferred from Bob to Adam, then
 
  A) the change in Adam's marginal benefit plus the change in Bob's marginal benefit is negative.
  B) Adam's marginal benefit increases by more than Bob's marginal benefit decreases.
  C) the change in Adam's marginal benefit plus the change in Bob's marginal benefit equals zero.
  D) Adam's marginal benefit decreases by more than Bob's marginal benefit increases.

Question 2

Which of the following results in a parallel shift outward of your indifference curves between gasoline and movie rentals?
 
  A) any decrease in the prices of gasoline and movie rentals
  B) an equal percentage decrease in the prices of gasoline and movie rentals
  C) an increase in your income
  D) none of the above



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Carliemb17

  • Sr. Member
  • ****
  • Posts: 325
Answer to Question 1

B

Answer to Question 2

D





 

Did you know?

Immunoglobulin injections may give short-term protection against, or reduce severity of certain diseases. They help people who have an inherited problem making their own antibodies, or those who are having certain types of cancer treatments.

Did you know?

Hip fractures are the most serious consequences of osteoporosis. The incidence of hip fractures increases with each decade among patients in their 60s to patients in their 90s for both women and men of all populations. Men and women older than 80 years of age show the highest incidence of hip fractures.

Did you know?

Atropine was named after the Greek goddess Atropos, the oldest and ugliest of the three sisters known as the Fates, who controlled the destiny of men.

Did you know?

Asthma is the most common chronic childhood disease in the world. Most children who develop asthma have symptoms before they are 5 years old.

Did you know?

Autoimmune diseases occur when the immune system destroys its own healthy tissues. When this occurs, white blood cells cannot distinguish between pathogens and normal cells.

For a complete list of videos, visit our video library