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 205 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?

Asthma occurs in one in 11 children and in one in 12 adults. African Americans and Latinos have a higher risk for developing asthma than other groups.

Did you know?

Certain chemicals, after ingestion, can be converted by the body into cyanide. Most of these chemicals have been removed from the market, but some old nail polish remover, solvents, and plastics manufacturing solutions can contain these substances.

Did you know?

The senior population grows every year. Seniors older than 65 years of age now comprise more than 13% of the total population. However, women outlive men. In the 85-and-over age group, there are only 45 men to every 100 women.

Did you know?

Amoebae are the simplest type of protozoans, and are characterized by a feeding and dividing trophozoite stage that moves by temporary extensions called pseudopodia or false feet.

Did you know?

Common abbreviations that cause medication errors include U (unit), mg (milligram), QD (every day), SC (subcutaneous), TIW (three times per week), D/C (discharge or discontinue), HS (at bedtime or "hours of sleep"), cc (cubic centimeters), and AU (each ear).

For a complete list of videos, visit our video library