On a Certain Island There Are Only Two Goods, Wheat

question 15

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 16 units of milk or 31 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)the number of units of milk produced equals the number of units of wheat produced.
• B)total milk production is 8,000 units.
• C)all citizens consume the same commodity bundle.
• D)every consumer's marginal rate of substitution between milk and wheat is -1.
• E)None of the above is true at every Pareto optimal allocation.

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Definitions:

Lysine

An essential amino acid required by the human body for growth and tissue repair, not synthesized by the body and must be obtained from the diet.

Stereosiomer

Molecules with the same molecular formula and sequence of bonded atoms, but they differ in the 3D orientation of their atoms in space.

Carboxylic Acid

Organic compounds that contain a carboxyl group (-COOH), which consists of a carbon atom double-bonded to an oxygen atom and single-bonded to a hydroxyl group.

Oligopeptide

An oligopeptide is a short chain of amino acids, typically having fewer than 20 residues, connected by peptide bonds.