Adam Makes $25,000 Per Year and Bob Makes $45,000 a Year

question 103

Multiple Choice

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) Adam's marginal benefit increases by more than Bob's marginal benefit decreases.
• B) the change in Adam's marginal benefit plus the change in Bob's marginal benefit equals zero.
• C) the change in Adam's marginal benefit plus the change in Bob's marginal benefit is negative.
• D) Adam's marginal benefit decreases by more than Bob's marginal benefit increases.

---

Definitions:

Conducting Business Online

The act or process of carrying out transactions, marketing, or operational tasks over the Internet.

C2C Site

Consumer-to-consumer site, an online platform that allows consumers to sell goods and services to each other.

Social Networks

Online platforms that enable users to connect, interact, and share content with others, often organized around personal, professional, or thematic interests.

Subcategory of E-commerce

A specific division or smaller category within the broader realm of electronic commerce, focusing on a particular type of products, services, or business models.