You Are Given the Following Two Possible Community Indifference Curve

Multiple Choice

You are given the following two possible community indifference curve maps for a country, where curves S₁ and S'₁ pertain to income distribution #1 and curves S₂ and S'₂ pertain to income distribution #2.

The differing shapes of the curves in these two maps could reflect the fact that in income distribution #2, in comparison with income distribution #1, a greater share of total income is held by individuals who value __________. In addition, in this diagram, point B is preferred to point A __________.

A) good X relatively more highly than good Y; on the basis of income distribution #2 but not on the basis of income distribution #1
B) good X relatively more highly than good Y; on the basis of income distribution #1 but not on the basis of income distribution #2
C) good Y relatively more highly than good X; on the basis of income distribution #2 but not on the basis of income distribution #1
D) good Y relatively more highly than good X; on the basis of income distribution #1 but not on the basis of income distribution #2