Ken's Utility Function Is U(Q_K, W_K)=Q_KW_K and Barbie's Utility Function

question 30

Multiple Choice

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 3 units of quiche and 7 units of wine and Barbie's endowment were 6 units of quiche and 7 units of wine, then at any Pareto optimal allocation where both persons consume some of each good,

• A)Ken would consume 3 units of quiche for every 7 units of wine.
• B)Ken would consume 9 units of quiche for every 14 units of wine that he consumes.
• C)Barbie would consume twice as much quiche as Ken.
• D)Barbie would consume 6 units of quiche for every 7 units of wine that she consumes.
• E)None of the above.

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Definitions:

Egocentric Thinking

A type of thinking where an individual perceives the world solely from their own perspective, often neglecting or being unable to understand the viewpoint of others.

Conservation

A principle in environmental science focused on protecting natural resources and the environment for future generations.

Assimilation

A cognitive process where individuals integrate new information into existing frameworks or schemas.

Accommodation

In psychology, the process by which individuals adjust their schemas or ways of thinking to incorporate new information.