On a Certain Island There Are Only Two Goods, Wheat

question 5

Multiple Choice

On a certain island there are only two goods, wheat and milk. The only scarce resource is land. There are 1,000 acres of land. An acre of land will produce either 10 units of milk or 16 units of wheat. Some citizens have lots of land; some have just a little bit. The citizens of the island all have utility functions of the form U(M, W) = MW. At every Pareto optimal allocation,

• A) all citizens consume the same commodity bundle.
• B) total milk production is 5,000 units.
• C) every consumer's marginal rate of substitution between milk and wheat is -1.
• D) the number of units of milk produced equals the number of units of wheat produced.
• E) None of the above is true at every Pareto optimal allocation.

Distinguish between experimental, correlational, and other research methods and their appropriate applications.

Understand the ethical considerations and limitations inherent in experimental research design.

Appreciate the role of creativity in the design, execution, and interpretation of psychological research.

Understand the concepts and components of the "American system" of economics.

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Definitions:

Boomerang Children

Young adults who return to live in their family home with their parents after a period of independence, often due to financial difficulties or personal choice.

Substance Addictions

A dependency on substances, such as drugs or alcohol, characterized by an uncontrollable urge to consume the substance despite harmful consequences.

Nostalgia

A sentimental longing or wistful affection for the past, often for a period or place with happy personal associations.

Gay Parents

A term referring to parents who identify as gay or homosexual, highlighting the diversity in family structures.