In Problem 4, Ken's Utility Function Is U(Q_K, W_K) =

question 20

Multiple Choice

In Problem 4, Ken's utility function is U(Q_K, W_K) = Q_KW_K and Barbie's utility function is U(Q_B, W_B) = Q_BW_B. If Ken's initial endowment were 8 units of quiche and 11 units of wine and Barbie's endowment were 16 units of quiche and 11 units of wine, then at any Pareto optimal allocation where both persons consume some of each good,

• A) Barbie would consume twice as much quiche as Ken.
• B) Ken would consume 8 units of quiche for every 11 units of wine.
• C) Ken would consume 24 units of quiche for every 22 units of wine that he consumes.
• D) Barbie would consume 16 units of quiche for every 11 units of wine that she consumes.
• E) None of the above.

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Definitions:

Focused Freewriting

A writing strategy involving continuous, nonjudgmental writing focusing on a particular subject or question.

Brainstorming

A method for collective creativity aimed at producing a vast array of solutions to a particular issue.

Clustering

The process of grouping a set of objects in such a way that objects in the same group are more similar to each other than to those in other groups.

Freewriting

A writing strategy where a person writes continuously for a set period of time without regard for spelling, grammar, or topic, to generate ideas or overcome writer's block.