Question 1

An allocation that is worse for somebody than the initial allocation cannot be Pareto optimal.

Accepted Answer

A) True 
 B)False

Question 2

According to Arrow's impossibility theorem,it is impossible to find a social ordering that is complete,reflexive,and transitive.

Accepted Answer

A) True 
 B)False

Question 3

Suppose that Romeo has the utility function U =S5RS2J and Juliet has the utility function U =S1RS5J,where SR is Romeo's spaghetti consumption and SJ is Juliet's.They have 36 units of spaghetti to divide between them.

Accepted Answer

A)  Romeo would want to give Juliet some spaghetti if he had more than 18 units of spaghetti. 
B)  Juliet would want to give Romeo some spaghetti if she had more than 28 units. 
C)  Romeo and Juliet would never disagree about how to divide the spaghetti. 
D)  Romeo would want to give Juliet some spaghetti if he had more than 26 units of spaghetti. 
E)  Juliet would want to give Romeo some spaghetti if she had more than 30 units of spaghetti. 
A)  Romeo would want to give Juliet some spaghetti if he had more than 18 units of spaghetti. 
B)  Juliet would want to give Romeo some spaghetti if she had more than 28 units. 
C)  Romeo and Juliet would never disagree about how to divide the spaghetti. 
D)  Romeo would want to give Juliet some spaghetti if he had more than 26 units of spaghetti. 
E)  Juliet would want to give Romeo some spaghetti if she had more than 30 units of spaghetti.

Question 4

A parent has two children living in cities with different costs of living.The cost of living in city B is 4 times the cost of living in city A.The child in city A has an income of $3,000 and the child in city B has an income of $12,000.The parent wants to give a total of $1,000 to her two children.Her utility function is U(C A,C B)= C A C B,where C A and C B are the consumptions of the children living in cities A and B respectively.She will choose to give

Accepted Answer

A)  each child $500,even though this will buy less goods for the child in city B. 
B)  the child in city B 4 times as much money as the child in city A. 
C)  the child in city A 4 times as much money as the child in city B. 
D)  the child in city B 2 times as much money as the child in city A. 
E)  the child in city A 2 times as much money as the child in city B. 
A)  each child $500,even though this will buy less goods for the child in city B. 
B)  the child in city B 4 times as much money as the child in city A. 
C)  the child in city A 4 times as much money as the child in city B. 
D)  the child in city B 2 times as much money as the child in city A. 
E)  the child in city A 2 times as much money as the child in city B.

Question 5

A parent has two children living in cities with different costs of living.The cost of living in city B is 3 times the cost of living in city A.The child in city A has an income of $2,000 and the child in city B has an income of $6,000.The parent wants to give a total of $1,000 to her two children.Her utility function is U(C A,C B)= C A C B,where C A and C B are the consumptions of the children living in cities A and B respectively.She will choose to give

Accepted Answer

A)  the child in city B 3 times as much money as the child in city A. 
B)  the child in city B 1.50 times as much money as the child in city A. 
C)  each child $500,even though this will buy less goods for the child in city B. 
D)  the child in city A 3 times as much money as the child in city B. 
E)  the child in city A 1.50 times as much money as the child in city B. 
A)  the child in city B 3 times as much money as the child in city A. 
B)  the child in city B 1.50 times as much money as the child in city A. 
C)  each child $500,even though this will buy less goods for the child in city B. 
D)  the child in city A 3 times as much money as the child in city B. 
E)  the child in city A 1.50 times as much money as the child in city B.

Exam 34:Welfare-Part A

An allocation that is worse for somebody than the initial allocation cannot be Pareto optimal.

According to Arrow's impossibility theorem,it is impossible to find a social ordering that is complete,reflexive,and transitive.

Suppose that Romeo has the utility function U =S5RS2J and Juliet has the utility function U =S1RS5J,where SR is Romeo's spaghetti consumption and SJ is Juliet's.They have 36 units of spaghetti to divide between them.

Demand-Part A

Revealed Preference-Part A

Revealed Preference-Part B

Slutsky Equation-Part A

Slutsky Equation-Part B

Buying and Selling-Part A

Buying and Selling-Part B

Intertemporal Choice-Part A

Intertemporal Choice-Part B

Asset Markets-Part A

Asset Markets-Part B

Uncertainty-Part A

Uncertainty-Part B

Risky Assets-Part A

Risky Assets-Part B

Consumers Surplus-Part A

Consumers Surplus-Part B

Market Demand-Part A

Market Demand-Part B

Equilibrium-Part A

Equilibrium-Part B

Auctions-Part A

Auctions-Part B

Technology-Part A

Technology-Part B

Profit Maximization-Part A

Profit Maximization-Part B

Cost Minimization-Part A

Cost Minimization-Part B

Cost Curves-Part A

Cost Curves-Part B

Firm Supply-Part A

Firm Supply-Part B

Industry Supply-Part A

Industry Supply-Part B

Monopoly-Part A

Monopoly-Part B

Monopoly Behavior-Part A

Monopoly Behavior-Part B

Factor Markets-Part A

Factor Markets-Part B

Oligopoly-Part A

Oligopoly-Part B

Game Theory-Part A

Game Theory-Part B

Game Applications-Part A

Game Applications-Part B

Behavioral Economics-Part A

Exchange-Part A

Exchange-Part B

Production-Part A

Production-Part B

Welfare-Part B

Externalities-Part A

Externalities-Part B

Information Technology-Part A

Information Technology-Part B

Public Goods-Part A

Public Goods-Part B

Asymmetric Information-Part A

Asymmetric Information-Part B

Filters

Suppose that Romeo has the utility function U =S⁵_RS²_J and Juliet has the utility function U =S¹_RS⁵_J,where S_R is Romeo's spaghetti consumption and S_J is Juliet's.They have 36 units of spaghetti to divide between them.