(See Problem 2

question 22

Multiple Choice

(See Problem 2.) Robinson Crusoe has exactly 14 hours per day to spend gathering coconuts or catching fish. He can catch 5 fish per hour or he can pick 20 coconuts per hour. His utility function is U(F, C) = FC, where F is his consumption of fish and C is his consumption of coconuts. If he allocates his time in the best possible way between catching fish and picking coconuts, his consumption will be the same as it would be if he could buy fish and coconuts in a competitive market where the price of coconuts is $1, his income is

• A) $280 and the price of fish is $4.
• B) $70 and the price of fish is $5.
• C) $350 and the price of fish is $5.
• D) $280 and the price of fish is $.20.
• E) $175 and the price of fish is $.20.

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Definitions:

Utilitarian

Pertains to the ethical theory that the best action is the one that maximizes utility, generally defined as that which produces the greatest well-being of the greatest number of people.

Macroallocation

Refers to the broad, system-wide distribution of healthcare resources and services, focusing on how resources are allocated across different regions, populations, or types of care.

Altruistic Donation

This is the act of donating an organ or tissue without receiving any financial or material compensation in return.

Presumed Consent

A policy where individuals are presumed willing to donate their organs upon death unless they have explicitly stated otherwise.