In Figure 21.1:
A)points A and B represent the same level of well-being.
B)point A represents greater well-being than does point B.
C)point B represents greater well-being than does point A.
D)it is impossible to rank the well-being represented by points A and B without more information.

Question

In Figure 21.1: 
A)points A and B represent the same level of well-being. 
B)point A represents greater well-being than does point B. 
C)point B represents greater well-being than does point A. 
D)it is impossible to rank the well-being represented by points A and B without more information.

Quizplus · Accepted Answer

Point A represents a higher level of income (represented by the vertical axis) and a higher level of leisure (represented by the horizontal axis) than point B. As individuals generally consider more income and more leisure to be better than less, point A represents greater well-being than point B.