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 974 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?

Though Candida and Aspergillus species are the most common fungal pathogens causing invasive fungal disease in the immunocompromised, infections due to previously uncommon hyaline and dematiaceous filamentous fungi are occurring more often today. Rare fungal infections, once accurately diagnosed, may require surgical debridement, immunotherapy, and newer antifungals used singly or in combination with older antifungals, on a case-by-case basis.

Did you know?

Eating carrots will improve your eyesight. Carrots are high in vitamin A (retinol), which is essential for good vision. It can also be found in milk, cheese, egg yolks, and liver.

Did you know?

About 100 new prescription or over-the-counter drugs come into the U.S. market every year.

Did you know?

The word drug comes from the Dutch word droog (meaning "dry"). For centuries, most drugs came from dried plants, hence the name.

Did you know?

Side effects from substance abuse include nausea, dehydration, reduced productivitiy, and dependence. Though these effects usually worsen over time, the constant need for the substance often overcomes rational thinking.

For a complete list of videos, visit our video library