For the next two questions, assume Peters and Walters are prisoners. Peters received a shipment containing only chocolates, whereas Walters received a shipment containing only cigarettes. which point on the Edgeworth box below represents the endowment? ' Walters chocolate Peters cigarettes Figure 1: Edgcworth Box Corners Select one: 0 a. Z O b. W O c. Y 0 d. X Suppose Peters is a nonsmoker and Walters is allergic to chocolate. What would the contract curve look like in this case? Select one: 0 a. The contract curve consists of allocation Z only. 0 b. The contract curve consists of allocation Y only. 0 c. The contract curve consists of allocation X only. 0 d. The contract curve consists of allocation w only. For the next three questions, assume in a pure exchange economy, Anna (A) and Bob (B) trade fish (F) and cheese (C). There is one unit of fish and one unit of cheese available. Anna's utility function is UA = F2C. Bob's utility function is UB = FC2. Is this allocation Pareto efficient? {(FA;CA),(FB;CB))={(0.5; 0.5) ; (0.5; 0.5)} Select one: O a. No, this allocation is not Pareto efficient. O b. Yes, this allocation is Pareto efficient. Is this allocation Pareto efficient? {(FA;CA), (FB;CB)}={(1, 0); (0, 1)} Select one: O a. No, this allocation is not Pareto efficient. O b. Yes, this allocation is Pareto efficient. Is this allocation Pareto efficient? {(FA;CA), (FB;CB))={(1, 1); (0, 0)} Select one: O a. Yes, this allocation is Pareto eefficient. O b. No, this allocation is not Pareto efficientFor the next four questions, consider a pure exchange economy where Anna and Bob trade apples and bananas. Suppose that Anna considers one apple to trade off for three bananas. Bob considers an apple to trade off for four bananas. In other words, Anna's MRS is 3 and Bob's MRS is 4. Answer the following three questions for each of the four cases below. (a). Is Anna better off, worse off, or the same? (b). Is Bob better off, worse off, or the same? (c). Does this exchange represent a Pareto improvement? Suppose that Anna gives Bob 3 bananas in exchange for an apple. Select one: O a. Anna is the same; Bob is the same; this exchange does not represent a Pareto improvement. O b. Anna is better off; Bob is the same; this exchange represents a Pareto improvement. O c. Anna is better off; Bob is better off; this exchange represents a Pareto improvement. O d. Anna is worse off; Bob is worse off; this exchange does not represent a Pareto improvement. O e. Anna is worse off; Bob is better off; this exchange does not represent a Pareto improvement. O f. Anna is the same; Bob is better off; this exchange represents a Pareto improvement. O g. Anna is the same; Bob is worse off; this exchange does not represent a Pareto improvement. O h. Anna is worse off; Bob is the same; this exchange does not represent a Pareto improvement. O i. Anna is better off; Bob is worse off; this exchange does not represent a Pareto improvement. Suppose that Anna gives Bob 3.5 bananas in exchange for an apple. Select one: O a. Anna is better off; Bob is better off; this exchange represents a Pareto improvement. O b. Anna is worse off; Bob is worse off; this exchange does not represent a Pareto improvement. c. Anna is the same; Bob is better off; this exchange represents a Pareto improvement. O d. Anna is better off; Bob is the same; this exchange represents a Pareto improvement. O e. Anna is worse off; Bob is better off; this exchange does not represent a Pareto improvement. O f. Anna is the same; Bob is the same; this exchange does not represent a Pareto improvement. O g. Anna is worse off; Bob is the same; this exchange does not represent a Pareto improvement. O h. Anna is better off; Bob is worse off; this exchange does not represent a Pareto improvement. O i. Anna is the same; Bob is worse off; this exchange does not represent a Pareto improvement.Suppose that Anna gives Bob 5 bananas in exchange for an apple. Select one: O a. Anna is the same; Bob is better off; this exchange represents a Pareto improvement. O b. Anna is better off; Bob is the same; this exchange represents a Pareto improvement. O c. Anna is worse off; Bob is worse off; this exchange does not represent a Pareto improvement. O d. Anna is the same; Bob is the same; this exchange does not represent a Pareto improvement. O e. Anna is worse off; Bob is better off; this exchange does not represent a Pareto improvement. O f. Anna is the same; Bob is worse off; this exchange does not represent a Pareto improvement. O g. Anna is better off; Bob is better off; this exchange represents a Pareto improvement. O h. Anna is worse off; Bob is the same; this exchange does not represent a Pareto improvement. O i. Anna is better off; Bob is worse off; this exchange does not represent a Pareto improvement. Suppose that Bob gives Anna 3.5 bananas in exchange for an apple. Select one: O a. Anna is better off; Bob is worse off; this exchange does not represent a Pareto improvement. O b. Anna is the same; Bob is worse off; this exchange does not represent a Pareto improvement. O c. Anna is worse off; Bob is worse off; this exchange does not represent a Pareto improvement. O d. Anna is the same; Bob is better off; this exchange represents a Pareto improvement O e. Anna is worse off; Bob is the same; this exchange does not represent a Pareto improvement. O f. Anna is better off; Bob is the same; this exchange represents a Pareto improvement. O g. Anna is the same; Bob is the same; this exchange does not represent a Pareto improvement. O h. Anna is better off; Bob is better off; this exchange represents a Pareto improvement. O i. Anna is worse off; Bob is better off; this exchange does not represent a Pareto improvement