Professor Nightsoil's Utility Function Is U_N(B_N, P_N)= B_N + 4p^1/2_N

question 22

Multiple Choice

Professor Nightsoil's utility function is U_N(B_N, P_N) = B_N + 4p^1/2_N and Dean Interface's utility function is U_I(B_I, P_I) =B_I +2p^1/2_I.If Nightsoil's initial endowment is 4 bromides and 15 platitudes and if Interface's initial endowment is 7 bromides and 15 platitudes, then at any Pareto efficient allocation where both persons consume positive amounts of both goods,

• A)Interface consumes 3 bromides.
• B)Interface consumes 5.50 bromides.
• C)Nightsoil consumes the same ratio of bromides to platitudes as Interface.
• D)Interface consumes 6 platitudes.
• E)Interface consumes 3 platitudes.

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Definitions:

Positive

Characterized by or displaying affirmation or acceptance; commonly used to describe a constructive or optimistic outlook.

Type A Behavior Pattern

A personality trait characterized by high levels of competitiveness, aggressiveness, impatience, and a sense of urgency, linked with an increased risk of heart disease.

Type B Behavior Pattern

A personality type characterized by less competitive, more relaxed, and less stress-prone behaviors than Type A.

External Locus of Control

A belief that outcomes in one's life are determined by external factors beyond one's control, as opposed to believing in the ability to influence outcomes through own efforts.