Assume there are only two individuals in an economy, Lisa and Bart. Th

Assume there are only two individuals in an economy, Lisa and Bart. The utility possibilities frontier for these individuals is given as:

120 = UL + UB
where UL is Lisa’s utility and UB is Bart’s utility. Lisa’s current level of utility is 20, Bart’s level of utility is 90. This combination is:
A) inefficient.
B) economically efficient.
C) impossible, because it is outside of the welfare frontier.
D) none of the above

ANSWER

A