Use the following figure to answer the question : Figure 19-1 :
,the curve TT shows how the allocation of a resource affects the well-being of two individuals,Hank and Monica.
-In Figure 19-1,TT is referred to as:
A)the welfare frontier.
B)the production possibility frontier.
C)the marginal rate of transformation curve.
D)the community indifference curve.

Question

Use the following figure to answer the question : Figure 19-1 : 
,the curve TT shows how the allocation of a resource affects the well-being of two individuals,Hank and Monica. 
-In Figure 19-1,TT is referred to as:
A)the welfare frontier. 
B)the production possibility frontier. 
C)the marginal rate of transformation curve. 
D)the community indifference curve.

Quizplus · Accepted Answer

The curve TT in Figure 19-1 is referred to as the welfare frontier as it shows the different combinations of the allocation of a resource that would affect the well-being of two individuals. It is not the production possibility frontier, which shows the maximum amount of goods that can be produced by an economy. It is also not the marginal rate of transformation curve, which indicates the rate at which one good may be substituted for another good while producing a constant level of output. Finally, it is not the community indifference curve, which shows the different levels of satisfaction for a community with varying combinations of two goods.

Use the Following Figure to Answer the Question : Figure