If Tastes Are Homothetic, There Exists a Utility Function (That

question 13

True/False

If tastes are homothetic, there exists a utility function (that represents those tastes) such that the indirect utility function is homogeneous of degree 1 in income.

---

Definitions:

Universal Health-Care

A health care system that provides medical services to all citizens regardless of their ability to pay, typically funded by the government.

For-Profit System

A business or institution operated with the primary goal of making profits for its owners or shareholders, as opposed to non-profit organizations which aim to serve a public good.

Black Death

A devastating global epidemic of bubonic plague that struck Europe and Asia in the mid-14th century, leading to massive population declines and social upheavals.

Sociology

An analysis of how people behave in societal contexts, the nature of social connections, interactions within society, and the cultural aspects influencing everyday life.