Consider an exchange economy with two types of agents, A and B, and two goods, r and Y. Preferences are given byuA(XA, YA) = xA+ 6 In(yA) and up(xB, YB) = In(*BYB). Suppose the government wants to reach the goal of 2B = 5 with thecompetitive equilibrium by setting a redistribution r such that wa =the government's goal. Round your answer to 2 decimal points.(10, r) and wg = (0, 20 – r). Let Py =1. Find r reachesAnswer:The correct answer is: 1.82Tom and Jerry live together, and they plan to do the chores on the weekends. They have 4 tasks to finish, and each of them needsto pick 2 tasks to finish. The table below demonstrates the their utilities of doing a task. The higher the utility is, the more preferredthe task is.[Laundry] [Moaning]l[Car Washing] [Floor Cleaning]Tom-5-10-10Jerry-6-3-12-3The current allocation is that Tom does moaning and car washing while Jerry does laundry and floor cleaning. What is theminimum value that X can be to make the current allocation Pareto optimal?Answer:The correct answer is: -5

UA = xA + 6 ln (yA ) UB = ln (xB yB ) Goal of xB =5 Endowments: wA = (10 , r) wB = (0 , 20-r) py…

Consider an exchange economy with two types of agents, A and B, and two goods, a and y. Preferences are given by uA(TA, YA) = XA +6 ln(yA) and ug(xB, YB) = In(rBYB). Suppose the government wants to reach the goal of rB = 5 with the competitive equilibrium by setting a redistribution r such that wa = (10, r) and wy = (0, 20 – r). Let Py = 1. Findr reaches the government's goal. Round your answer to 2 decimal points. Answer:

Consider an exchange economy with two types of agents, A and B, and two goods, a and y. Preferences are given by uA(TA, YA) = XA +6 ln(yA) and ug(xB, YB) = In(rBYB). Suppose the government wants to reach the goal of rB = 5 with the competitive equilibrium by setting a redistribution r such that wa = (10, r) and wy = (0, 20 – r). Let Py = 1. Findr reaches the government's goal. Round your answer to 2 decimal points. Answer:

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider an exchange economy with two types of agents, A and B, and two goods, x and Y. Preferences are given by UA (XA, YA) = XA + 10 ln(ya) and uB(xB, YB) = In(*BYB). Suppose the government wants to reach the goal of xB = 5 with the competitive equilibrium by setting a redistribution r such that wA = (10, r) and wB = (0, 20 – r). Let py = 1. Find r reaches the government's goal. Round your answer to 2 decimal points. Answer:
Consider an exchange economy with two types of agents, A and B, and two goods, x and y. Preferences are given by UA (XA, YA) = = A + 6 ln(y₁) and UB(TB, YB) = ln(TBYB). Suppose the government wants to reach the goal of XB = 5 with the competitive equilibrium by setting a redistribution r such that w₁ = (10,r) and wB = (0,20 - r). 1. Find r reaches the government's goal. Round your answer to 2 decimal points. Let Py = Answer:
Consider an exchange economy with two types of agents, A and B, and two goods, x and Y. Preferences are given by UA(TA, YA) = x A + 10 ln(yA) and uB(xB, YB) = ln(¤BYB). Suppose the government wants to reach the goal of xB with the competitive equilibrium by setting a redistribution r such that wA = (10, r) and wB = (0, 20 – r). Let py r reaches the government's goal. Round your answer to 2 decimal points. 1. Find Answer:
D7) In a two good two consumer economy, utility functions are U1(x1,x2) =x1(x2)2 and U2(x1,x2) = (x1)2 x2 The endowments of the consumers are e1 =(10,0) and e2=(0,20). Find the allocation of goods in Walrasian equilibrium.
A social welfare function is thought to be additive along the lines proposed by Bentham and Mill: W = U, + U, + .+ Un where U; is individual i's utility and there are n individuals. Suppose an economy is made up of two individuals, John and Jane. John's utility function is U John = 17X and Jane's utility function is U JJane = 2X. There is a fixed quantity of good X (40 units) evenly divided between John and Jane (20 units for each). Social welfare (W) is equal to: W = = utils. (Enter your response rounded to the nearest whole number.)
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Consider a pure-exchange economy of two individuals (A and B) and two goods (X and Y). Individual A is endowed with 5 units of good X and 3 units of good Y, while individual B with 3 and 4 units of goods X and Y, respectively. Assuming utility functions of individuals A and B to be UA=XA YA² and UB-XB² YB where Xi and Yi for i= {A, B} represent individual i's consumption of good X and Y respectively, what will be the set of Pareto optimal allocation in this economy?
Consider a pure exchange economy, where each consumer has preferences described by a Cobb-Douglas utility function. Both consumers have exactly the same endowment. In such an economy, an equitable distribution of goods (where each individual consumes exactly half of each good) is a Walrasian equilibrium allocation? a. always, for any consumers' preferences b. only if consumers' preferences are exactly the same c. Never d. None of the above
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Consider an Edgeworth box economy, where preferences and endowments are given by. ( attached below ) In the following, use the normalization p2 = 1.(a) Find all the Pareto optimal allocations (use x1 to parameterize thePO allocations). (b) Suppose the government wants individual 1 to have the bundle x1 = (5, 9). Show whether the government can induce this outcome an equilib- rium with transfers. Find the supporting prices and transfers if possible. (c) State the Second Fundamental Theorem of Welfare and explain how the result in part (b) relates to that theorem. (d) Suppose the government does not care what bundle individual 1 gets and only wants to ensure that the individual 1 receives utility level equal to 45. Show whether this can be achieved as an equilibrium with transfers. Find the supporting prices and transfers if possible.
Consider a pure exchange economy, where each consumer has preferences described by a Cobb-Douglas utility function. Both consumers have exactly the same endowment. In such an economy, an equitable distribution of goods (where each individual consumes exactly half of each good) is a Walrasian equilibrium allocation. a. always for any consumers' preferences b.only if consumers' preferences are exactly the same c. never d. non of the above