Individuals Derive Utility from Picnics,p,and Kayak Trips,k

question 25

Multiple Choice

Individuals derive utility from picnics,p,and kayak trips,k.Assuming that an individual's utility is U(p,k) = k^0.5p^0.5 and income is $100,what is the marginal rate of substitution (MRS) between picnics and kayak trips?

• A) MRS = 1.
• B) MRS = -1.
• C) MRS = -
• D) There is no substitution because picnics and kayak trips are perfect complements.

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Definitions:

Sociohistorical Context

The combination of social and historical circumstances at a particular time that influence the environment or development of individuals and societies.

Freud's Theory

A comprehensive theory of human psychology that emphasizes unconscious processes, the significance of childhood experiences, and the role of sexual and aggressive drives in personality development.

Empirical

Connects to, is concerned with, or is verifiable by firsthand observation or involvement in experiences over abstract theory or logical premises.

Multifactorial

Having many factors that contribute to it, often used in the context of genetics, behavior, and disease causation.