Multiple Choice
On a certain island there are only two goods, wheat and milk. The only scarce resource is land. There are 1,000 acres of land. An acre of land will produce either 14 units of milk or 15 units of wheat. Some citizens have lots of land; some have just a little bit. The citizens of the island all have utility functions of the form U(M, W) = MW. At every Pareto optimal allocation,
A) the number of units of milk produced equals the number of units of wheat produced.
B) total milk production is 7,000 units.
C) all citizens consume the same commodity bundle.
D) every consumer's marginal rate of substitution between milk and wheat is -1.
E) None of the above is true at every Pareto optimal allocation.
Correct Answer:

Verified
Correct Answer:
Verified
Q7: A small company produces two goods, swords
Q8: Amy Canvas is an artist who produces
Q17: Al and Bill are the only workers
Q20: For each carload of ore removed from
Q24: Tip can write 2 pages of term
Q26: Tip can write 2 pages of term
Q27: For each carload of ore removed from
Q29: A small company produces two goods, swords
Q30: In the process of producing 1 hormone-free,
Q32: Al and Bill are the only workers