Manuela Has a Problem

question 4

Multiple Choice

Manuela has a problem. Her date has been late the last three times to pick her up and this upsets her. Tonight her date is late again. What should she say?

• A) "I can't believe you are late for the fourth time. This really upsets me! Why are you always so late?"
• B) Nothing right away as she is too upset. If he asks, "What's wrong?" just reply, "Nothing important."
• C) "This is the fourth time you have been late. I want you to know how much this hurts me. Maybe the next time you can text me and let me know you are running late."
• D) "This is the fourth time you have been late. I want you to know how much this hurts me. I wish you wouldn't disrespect me so much."

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Definitions:

Initial Endowment

Refers to the initial allocation of goods, resources, or wealth that an individual or entity possesses before any transactions.

Pareto Efficient

A situation where no individual or preference criterion can be better off without making at least one individual or preference criterion worse off.

Initial Endowment

The initial allocation of resources, money, or goods that an individual, institution, or country possesses.

Pareto Optimal

An allocation of resources from which it is impossible to reallocate to make any one individual better off without making at least one individual worse off.