Use the Following to Answer Question

question 35

Multiple Choice

Use the following to answer question:
Figure 15.5
-(Figure 15.5) Suppose that Elaine has 1 pancake and 4 bowls of cereal, which gives her a marginal utility of pancakes of 20 and marginal utility of cereal of 5. Jerry has 7 pancakes and 6 bowls of cereal, which gives him a marginal utility of pancakes of 6 and marginal utility of cereal of 18. Which of the following statements is (are) TRUE?

• A) The allocation is Pareto-efficient.
• B) Elaine and Jerry would both be better off if Elaine traded 1 pancake for 1 bowl of Jerry's cereal.
• C) A Pareto improvement would be for Elaine to give Jerry 2 bowls of cereal in exchange for 1 pancake.
• D) Elaine and Jerry would both be better off if Elaine traded 1/2 pancake for 1 bowl of Jerry's cereal.

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Definitions:

Non-renewable Resources

Natural resources that cannot be replenished within a human lifespan, including fossil fuels and minerals.

Natural Gas

A fossil fuel consisting mainly of methane, used as an energy source for heating, electricity generation, and as fuel for vehicles.

Acid Rain

Precipitation that is significantly more acidic than normal due to atmospheric pollution, leading to harmful effects on the environment and structures.

Ecological Footprint

A metric that quantifies the amount of nature's resources an individual, community or activity consumes relative to the Earth's capacity to regenerate those resources.