Multiple Choice
Kens utility function is U(Q K, W K ) = Q K W K and Barbies utility function is U(Q B, W B ) = Q B W B. If Kens initial endowment were 5 units of quiche and 9 units of wine and Barbies endowment were 10 units of quiche and 9 units of wine, then at any Pareto optimal allocation where both persons consumed some of each good,
A) Ken would consume 15 units of quiche for every 18 units of wine that he consumed.
B) Barbie would consume twice as much quiche as Ken.
C) Ken would consume 5 units of quiche for every 9 units of wine that he consumed.
D) Barbie would consume 10 units of quiche for every 9 units of wine that she consumed.
E) None of the above.
Correct Answer:

Verified
Correct Answer:
Verified
Q8: In a pure exchange economy with two
Q21: If two people have identical Cobb-Douglas utility
Q34: Pete and Dud live in a two-commodity
Q36: An economy has 2,000 people. 1,000 of
Q38: From Walras's law it follows that in
Q39: Teresa and Jean-Pierre both consume the same
Q40: An economy has two people, Charlie and
Q42: Professor Nightsoils utility function is U N
Q60: In a competitive pure exchange economy, if
Q66: A pure exchange economy is an economy