On a Certain Island There Are Only Two Goods, Wheat

question 16

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 14 units of milk or 15 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 7,000 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:

Velocity

The speed of an object in a particular direction, often measured in meters per second (m/s) or kilometers per hour (km/h).

Formation

The process of being naturally formed or the structure or composition of something that has been formed, often used in geological contexts.

Migration

The movement of people, animals, or particles from one location to another, often driven by environmental factors, social changes, or economic pressures.

Meanders

Naturally occurring bends or curves in a river or waterway, typically resulting from erosion and sediment deposition.