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Author Question: Adam makes 25,000 per year and Bob makes 45,000 a year, and they both have the same marginal benefit ... (Read 977 times)

JGIBBSON

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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



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Carliemb17

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Answer to Question 1

B

Answer to Question 2

D





 

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