You Are Given the Following Two Possible Community Indifference Curve

question 19

Multiple Choice

You are given the following two possible community indifference curve maps for a country, where curves S₁ and S'₁ pertain to income distribution #1 and curves S₂ and S'₂ pertain to income distribution #2.

The differing shapes of the curves in these two maps could reflect the fact that in income distribution #2, in comparison with income distribution #1, a greater share of total income is held by individuals who value __________. In addition, in this diagram, point B is preferred to point A __________.

• A) good X relatively more highly than good Y; on the basis of income distribution #2 but not on the basis of income distribution #1
• B) good X relatively more highly than good Y; on the basis of income distribution #1 but not on the basis of income distribution #2
• C) good Y relatively more highly than good X; on the basis of income distribution #2 but not on the basis of income distribution #1
• D) good Y relatively more highly than good X; on the basis of income distribution #1 but not on the basis of income distribution #2

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Definitions:

Solutes

Substances dissolved in a solvent to form a solution, often referring to solids dissolved in liquids.

Nutritional Value

Nutritional value refers to the content of essential nutrients in food, such as vitamins, minerals, and proteins, important for supporting life and health.

Reabsorption

The process by which the kidneys filter the blood, removing waste but reabsorbing water and other essential substances back into the bloodstream.

Diabetes Insipidus

A disorder marked by an imbalance of water in the body, leading to intense thirst and the production of large amounts of urine.