A 52-Year-Old Man Comes to the Office for a Routine

question 3

Multiple Choice

A 52-year-old man comes to the office for a routine follow-up appointment.  The patient has a history of well-controlled hypertension and hyperlipidemia.  He has a 35-pack-year smoking history and reports that he continues to smoke about 10-15 cigarettes daily.  Family history is significant for lung cancer in his mother.  His father died following a stroke at age 65.  When asked about whether he has considered quitting, the patient replies that he is not ready to stop smoking.  He says, "I know I probably should, but I'm just too stressed at work to give up my cigarettes right now.  To be honest, I'm probably smoking closer to a pack a day."  Which of the following is the most appropriate response to the patient?

• A)"I suggest that you consider how your health may improve if you were to stop smoking."
• B)"I understand that you're under a lot of stress, but you are capable of more than you think."
• C)"What do you worry will happen if you quit smoking?  What about if you don't quit?"
• D)"What is your understanding of how smoking relates to lung cancer and stroke?"
• E)"With all the smoking cessation treatment options available, quitting is a lot more manageable."

Identify the conditions under which a Pareto optimal allocation is also a competitive equilibrium.

Understand the role of initial endowments in determining allocations in pure exchange economies.

Grasp the concept of utility functions and how they influence consumer choice decisions.

Recognize the significance of the contract curve and its relation to Pareto optimality and feasibility of allocations.

---

Definitions:

Shirking

The act of avoiding work or responsibilities, often covertly, within an employment context.

Franchising

A business model allowing individuals or entities to operate a business under the name and system of an established brand in exchange for a fee and ongoing royalties.

Franchisee

An individual or business entity that purchases the right to operate a branch of a franchise using the franchisor’s trademarks, systems, and business model.

Earnings

The amount of money that an individual or corporation receives in exchange for providing a good, service, or through investing capital.