-Point e in Exhibit 6-25 is better than which other point?
A) Point a because e represents the same utility at a lower level of expenditure.
B) Point a because e represents higher utility at the same level of expenditure.
C) Point b because e represents the same utility at a lower level of expenditure.
D) Point b because e represents higher utility at the same level of expenditure.
E) Point a because e represents higher utility at a lower level of expenditure.

Question

-Point e in Exhibit 6-25 is better than which other point?
A) Point a because e represents the same utility at a lower level of expenditure. 
B) Point a because e represents higher utility at the same level of expenditure. 
C) Point b because e represents the same utility at a lower level of expenditure. 
D) Point b because e represents higher utility at the same level of expenditure. 
E) Point a because e represents higher utility at a lower level of expenditure.

Quizplus · Accepted Answer

Point e is better than point a because it represents higher utility at the same level of expenditure, indicating a more efficient allocation of resources.

-Point E in Exhibit 6-25 Is Better Than Which Other