An Economy Has Two People, Charlie and Doris

question 46

Multiple Choice

An economy has two people, Charlie and Doris.There are two goods, apples and bananas.Charlie has an initial endowment of 6 apples and 6 bananas.Doris has an initial endowment of 12 apples and 3 bananas.Charlie's utility function is U(A C, B C) = A C B C, where A C is his apple consumption and B C is his banana consumption.Doris's utility function is U(A D, B D) = A D B D, where A D and B D are her apple and banana consumptions.At every Pareto optimal allocation,

• A)Charlie consumes more bananas per apple than Doris does.
• B)Charlie consumes the same number of apples as Doris.
• C)Charlie consumes 18 apples for every 9 bananas that he consumes.
• D)Doris consumes equal numbers of apples and bananas.
• E)Doris consumes 12 apples for every 3 bananas that she consumes.

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Definitions:

Moral Development

Moral development is the process by which individuals acquire and understand moral concepts, ethical principles, and values, guiding their behavior across the lifespan.

Heinz

Heinz may refer to a brand name commonly associated with food products, particularly known for ketchup, or it could refer to the ethical dilemma in Kohlberg's moral development theory involving a man named Heinz.

Psychological Study

The scientific investigation of mental functions and behaviors, aiming to understand and explain thought, emotion, and behavior.

Moral Development

The process through which individuals develop proper attitudes and behaviors toward other people in society, based on social and cultural norms, rules, and laws.