Figure 16.3.1 -Assume There Are Only Two Individuals in an Economy, Lisa

question 90

Multiple Choice

Figure 16.3.1
-Assume there are only two individuals in an economy, Lisa and Bart. The utility possibilities frontier for these individuals is given as: 120 = U_L + U_B
Where U_L is Lisa's utility and U_B is Bart's utility. Lisa's current level of utility is 20, Bart's level of utility is 90. This combination is:

• A) inefficient.
• B) economically efficient.
• C) impossible, because it is outside of the welfare frontier.
• D) none of the above

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