Here's another Pareto Optimality question, just for practice. Imagine consumer A has a utility function U-x and consumer B has a utility function U-min(xy). Right now both consumers have 10 units of x and 10 units of y. Is this Pareto optimal? Yes No, Consumer A should give their x to consumer B No. Consumer A should give their y to consumer B No. Consumer B should give their x to consumer A No, Consumer B should give their y to consumer A Question 2 1 pts Consider an economy that produces two goods, x and y. The production possibilities frontier for this economy is curved and at the current production point, the marginal rate of transformation (MRTxy) in this economy is equal to 3. The economy also has an economy-wide indifference curve that is bowed in to the origin. The marginal rate of substitution (MRSxy) is equal to 1 at the current production point. What must occur for this economy to reach a Pareto optimal outcome? O It must produce more x and less y It must produce less x and more y Nothing. This is already Pareto optimal. D Question 3 1 pts Consider an economy that produces two goods, x and y. The production possibilities frontier (PPF) for this economy is linear (i.e. a straight line) and the current production point is x=100 and y=50. The marginal rate of transformation (MRTxy) is equal to 2 for the entire PPF. The economy also has an economy-wide indifference curve that is bowed in to the origin, You know that the marginal rate of substitution (MRSxy) is equal to -, What is the optimal production value of y? Hint: you'll likely find x before you find y, so be sure you enter the value for y