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 369 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?

It is difficult to obtain enough calcium without consuming milk or other dairy foods.

Did you know?

The average human gut is home to perhaps 500 to 1,000 different species of bacteria.

Did you know?

Of the estimated 2 million heroin users in the United States, 600,000–800,000 are considered hardcore addicts. Heroin addiction is considered to be one of the hardest addictions to recover from.

Did you know?

Signs and symptoms that may signify an eye tumor include general blurred vision, bulging eye(s), double vision, a sensation of a foreign body in the eye(s), iris defects, limited ability to move the eyelid(s), limited ability to move the eye(s), pain or discomfort in or around the eyes or eyelids, red or pink eyes, white or cloud spots on the eye(s), colored spots on the eyelid(s), swelling around the eyes, swollen eyelid(s), and general vision loss.

Did you know?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

For a complete list of videos, visit our video library