A Small Economy Has Only Two Consumers, Zeke and Maude

question 61

Multiple Choice

A small economy has only two consumers, Zeke and Maude.Zeke's utility function is U(x, y) = x + 48y^1/2.Maude's utility function is U(x, y) = x + 4y.At a Pareto optimal allocation in which both individuals consume some of each good, how much y does Zeke consume?

• A)36
• B)12
• C)5
• D)10
• E)We can't tell without knowing the initial endowments.

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Definitions:

Humanist Movement

A philosophical and ethical stance that emphasizes the value and agency of human beings, individually and collectively.

Carl Rogers

An influential American psychologist who founded the humanistic approach to psychology, emphasizing the importance of the self and the individual's potential for growth.

Psychology

The discipline concerned with behavior and mental processes and how they are affected by an organism’s physical state, mental state, and external environment; the term is often represented by Ψ, the Greek letter psi (usually pronounced “sy”).

Conditional Positive Regard

Acceptance and love that are contingent upon a person's behavior, often used in the context of interpersonal relationships and self-esteem.