Suppose There Are 10 Apples and 10 Oranges in the Economy

question 74

Multiple Choice

Suppose there are 10 apples and 10 oranges in the economy. Joe is currently consuming 4 apples and 5 oranges, and Jane is consuming 6 apples and 5 oranges. At this allocation, Joe's marginal utility of apples is 3, and his marginal utility of oranges is 5. Jane's marginal utility of apples is 9. The current allocation is necessarily efficient if:

• A) the price of apples is 60% of the orange price.
• B) Jane's marginal utility of oranges is 6 at this point.
• C) Joe's MRS equal the MRT.
• D) Jane's marginal utility of oranges is 15 at this point.

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Definitions:

Aggression

Behavior characterized by strong self-assertion with hostile or harmful intentions or outcomes, often driven by anger or frustration.

Dorsal Anterior

This term is incomplete without specifying the part of the body or brain it refers to; for example, the Dorsal Anterior Cingulate Cortex (dACC) is involved in processing pain and fear.

Cingulate Cortex

A part of the brain situated in the medial aspect of the cerebral cortex, involved in various functions such as emotion formation, processing, learning, and memory.

Flight Or Fight

The physiological response to perceived harmful events, attacks, or threats to survival, triggering a choice between fleeing or fighting.