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,the curve TT shows:
A)a single and unique distribution of resources that jointly maximizes Hank's and Monica's well-being.
B)all the efficient resource allocations that are attainable.
C)all the points where the marginal rates of substitution between goods are equal for both Hank and Monica.
D)all the points that maximize the individual well-being of Hank and Monica.

Question

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,the curve TT shows:
A)a single and unique distribution of resources that jointly maximizes Hank's and Monica's well-being. 
B)all the efficient resource allocations that are attainable. 
C)all the points where the marginal rates of substitution between goods are equal for both Hank and Monica. 
D)all the points that maximize the individual well-being of Hank and Monica.

Quizplus · Accepted Answer

The curve TT represents all the efficient resource allocations that are attainable, meaning all the points where one individual's well-being cannot be improved without making the other individual's well-being worse off. It does not represent a single unique distribution that maximizes both individuals' well-being simultaneously nor does it necessarily represent points where the marginal rates of substitution between goods are equal for both individuals. Therefore, choice B is the best answer.

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