In Periods 0 and 1, Ralph Consumed Two Goods, X₁

question 45

Multiple Choice

In periods 0 and 1, Ralph consumed two goods, x₁ and x₂, and his utility functions in the two periods were identical. In period 0 the prices of x₁ and x₂ were $2 and $1 respectively, and Ralph consumed 10 units of x₁ and 80 units of x₂. In period 1 the prices of x₁ and x₂ were identical, and equal to $1. If Ralph consumed 40 units of x₁ and 40 units of x₂ in period 1, then the Paasche price index is:

• A)3/2.
• B)10/9.
• C)2/3.
• D)9/10.

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Definitions:

Adjourning Stage

The final phase in group development, where the group wraps up activities and prepares to disband or move on to new tasks.

Disband Permanently

means to dissolve a group, organization, or team in such a way that it will not be reformed or reconstituted in the future.

Task Force

A temporary group of people formed to accomplish a specific objective or to address a particular problem.

Class Sizes

The number of students enrolled in a particular class or educational course.