Tamara and Julio Consume Only Bread and Wine

question 22

Multiple Choice

Tamara and Julio consume only bread and wine.They trade only with each other and there is no production.They both have strictly convex preferences.Tamara's initial endowment of bread and wine is the same as Julio's.

• A)At the initial endowment their marginal rates of substitution must be the same.
• B)In a competitive equilibrium, the ratio of the two prices must be 1.
• C)In a competitive equilibrium, they must consume identical consumption bundles.
• D)If they have identical utility functions, then the initial allocation is Pareto optimal.
• E)None of the above.

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Definitions:

MMPI-A

The Minnesota Multiphasic Personality Inventory-Adolescent, a psychological assessment tool designed specifically for teenagers.

Normal Aspects

Characteristics or behaviors that are considered typical or expected within a certain context or population.

Abnormal Aspects

Features or behaviors that deviate significantly from what is considered typical or normal within a culture or society.

Adolescents

Refers to individuals in the developmental stage that typically ranges from the onset of puberty to legal adulthood.