A Small Economy Has Only Two Consumers, Nick and Minnie

question 13

Multiple Choice

A small economy has only two consumers, Nick and Minnie.Nick's utility function is U(x, y) = x + 154y^1/2.Minnie's utility function is U(x, y) = x + 7y.At a Pareto optimal allocation in which both individuals consume some of each good, how much y does Nick consume?

• A)22
• B)18
• C)121
• D)9
• E)We can't tell without knowing the initial endowments.

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Definitions:

Referral Interview

An informational conversation with someone referred by a contact who can provide insights into a job, company, or industry.

Field Of Work

The specific sector or industry where an individual is employed or has expertise.

Day-To-Day Work

Regular, routine tasks and responsibilities that are part of an individual's daily job or life activities.

National Labour Market

The supply and demand for labor, where employers seek workers and individuals seek employment, within a country.