Exam 10: General Equilibrium and Welfare

Suppose goods X and Y are produced along a production possibilities frontier X² + 4Y² = 500 and they are perfect substitutes such that U = X + Y.The slope of the production possibilities frontier is .What is the MRTS at the optimal point?

Consider a two-good production economy in which both goods are produced with fixed proportions production functions.Then,some efficient allocations will exhibit unemployment of some factor providing

Suppose goods X and Y are produced along a production possibilities frontier 4X² + Y² = 500 and they are perfect substitutes such that U = X + Y.The slope of the production possibilities frontier is .What is the MRS at the optimal point?

Suppose the Economics Department has a graduation party for its students but as a final test they must show they have learned something about trade.The men are given food when they walk in and the women are given drink.Suppose they have very different preferences where food and drink provide utility.For men .For women U=min(F,D)The contract curve in the Edgeworth box using a representative man and woman would be

Suppose a man and a woman are in love and care for the other's happiness as well as their own consumption.Suppose the woman is more selfish than the woman They will maximize the joint happiness ( )where

Each of the following factors might interfere with the efficiency of perfect competition except:

Suppose country A has a production possibilities frontier such that and country B has a production possibilities frontier such that and consumers in both countries view x and y as perfect substitutes.Country B will produce

Suppose a man and a woman are in love and care for the other's happiness as well as their own consumption.Suppose the man is more selfish than the woman They will maximize the joint happiness ( )where

Under a perfectly competitive price system

Suppose the Economics Department has a graduation party for its students but as a final test they must show they have learned something about trade.The men are given food when they walk in and the women are given drink.Suppose they have identical preferences where food and drink provide utility .The exchange would be such that