In the Figure Given Below,the Curve TT Shows How the Allocation

question 59

Multiple Choice

In the figure given below,the curve TT shows how the allocation of a resource affects the well-being of two individuals,Hank and Monica.
-In Figure 19-1,a move from C to D would:

• A)be desirable because it produces a more equal distribution of resources.
• B)be more desirable than a movement from C to B.
• C)be desirable because a movement from an inefficient allocation of resources to an efficient allocation of resources is always preferred.
• D)represent a movement from an inefficient allocation to an efficient allocation of resources.

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Definitions:

Fannie Mae

A government-sponsored enterprise (GSE) focused on expanding the secondary mortgage market by securitizing mortgages, enhancing liquidity in the financial system.

Freddie Mac

A public government-sponsored enterprise aimed at expanding the secondary mortgage market by buying loans from lenders.

Credit Standards

The criteria that lenders use to determine the creditworthiness of potential borrowers.

Sub-prime Loans

Loans offered to individuals with poor credit histories or higher risk of default, often at higher interest rates.