You Are a Parent Living in the 2010s with a Child

question 38

Multiple Choice

You are a parent living in the 2010s with a child who continues to live in the 2020s after you die and a grandchild who lives in the 2030s and continues to live after your child dies. There are two goods, x and y. The utility function of your child is U₂ = 7x + 5y +

• A) U₁
• B) U₃
• C) U₂₀₃₀

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Definitions:

Customs Clearance

The process of obtaining permission to import or export goods from one country to another, including the payment of duties and taxes.

Supplier's Country

The nation in which a supplier or producer of goods or services is located or operates from.

Port

A location on a coast or shore containing harbors where ships can dock and transfer people or cargo to or from land.

CIF

An international commercial term (Incoterm) meaning "Cost, Insurance, and Freight," indicating the seller must cover these costs to the point of destination specified.