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Only Individuals a and B Live on a Desert Island

Question 32

Multiple Choice

Only individuals A and B live on a desert island where no production is possible. A is endowed with 12 units of good X and 18 units of good Y. B is endowed with 6 units of good X and 42 units of good Y. In the Edgeworth box, good X is measured on the horizontal axis. Individual A's utility function is UA = 3XY so her MUX = 3Y and her MUY = 3X. Individual B's utility function is UB = 10 Only individuals A and B live on a desert island where no production is possible. A is endowed with 12 units of good X and 18 units of good Y. B is endowed with 6 units of good X and 42 units of good Y. In the Edgeworth box, good X is measured on the horizontal axis. Individual A's utility function is U<sub>A</sub> = 3XY so her MU<sub>X</sub> = 3Y and her MU<sub>Y</sub> = 3X. Individual B's utility function is UB = 10 so his and his MU<sub>Y</sub> = 5 . Which of the following allocations are on the contract curve? A) (X<sub>A</sub> = 12, Y<sub>A</sub> = 24) , (X<sub>B</sub> = 6, Y<sub>B</sub> = 36) B) (X<sub>A</sub> = 10, Y<sub>A</sub> = 28) , (X<sub>B</sub> = 8, Y<sub>B</sub> = 32) C) (X<sub>A</sub> = 9, Y<sub>A</sub> = 30) , (X<sub>B</sub> = 9, Y<sub>B</sub> = 30) D) None of the above. Only individuals A and B live on a desert island where no production is possible. A is endowed with 12 units of good X and 18 units of good Y. B is endowed with 6 units of good X and 42 units of good Y. In the Edgeworth box, good X is measured on the horizontal axis. Individual A's utility function is U<sub>A</sub> = 3XY so her MU<sub>X</sub> = 3Y and her MU<sub>Y</sub> = 3X. Individual B's utility function is UB = 10 so his and his MU<sub>Y</sub> = 5 . Which of the following allocations are on the contract curve? A) (X<sub>A</sub> = 12, Y<sub>A</sub> = 24) , (X<sub>B</sub> = 6, Y<sub>B</sub> = 36) B) (X<sub>A</sub> = 10, Y<sub>A</sub> = 28) , (X<sub>B</sub> = 8, Y<sub>B</sub> = 32) C) (X<sub>A</sub> = 9, Y<sub>A</sub> = 30) , (X<sub>B</sub> = 9, Y<sub>B</sub> = 30) D) None of the above. so his Only individuals A and B live on a desert island where no production is possible. A is endowed with 12 units of good X and 18 units of good Y. B is endowed with 6 units of good X and 42 units of good Y. In the Edgeworth box, good X is measured on the horizontal axis. Individual A's utility function is U<sub>A</sub> = 3XY so her MU<sub>X</sub> = 3Y and her MU<sub>Y</sub> = 3X. Individual B's utility function is UB = 10 so his and his MU<sub>Y</sub> = 5 . Which of the following allocations are on the contract curve? A) (X<sub>A</sub> = 12, Y<sub>A</sub> = 24) , (X<sub>B</sub> = 6, Y<sub>B</sub> = 36) B) (X<sub>A</sub> = 10, Y<sub>A</sub> = 28) , (X<sub>B</sub> = 8, Y<sub>B</sub> = 32) C) (X<sub>A</sub> = 9, Y<sub>A</sub> = 30) , (X<sub>B</sub> = 9, Y<sub>B</sub> = 30) D) None of the above. and his MUY = 5 Only individuals A and B live on a desert island where no production is possible. A is endowed with 12 units of good X and 18 units of good Y. B is endowed with 6 units of good X and 42 units of good Y. In the Edgeworth box, good X is measured on the horizontal axis. Individual A's utility function is U<sub>A</sub> = 3XY so her MU<sub>X</sub> = 3Y and her MU<sub>Y</sub> = 3X. Individual B's utility function is UB = 10 so his and his MU<sub>Y</sub> = 5 . Which of the following allocations are on the contract curve? A) (X<sub>A</sub> = 12, Y<sub>A</sub> = 24) , (X<sub>B</sub> = 6, Y<sub>B</sub> = 36) B) (X<sub>A</sub> = 10, Y<sub>A</sub> = 28) , (X<sub>B</sub> = 8, Y<sub>B</sub> = 32) C) (X<sub>A</sub> = 9, Y<sub>A</sub> = 30) , (X<sub>B</sub> = 9, Y<sub>B</sub> = 30) D) None of the above. . Which of the following allocations are on the contract curve?


A) (XA = 12, YA = 24) , (XB = 6, YB = 36)
B) (XA = 10, YA = 28) , (XB = 8, YB = 32)
C) (XA = 9, YA = 30) , (XB = 9, YB = 30)
D) None of the above.

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