A Consumer Has Preferences Represented by the Utility Function U(x₁

question 19

True/False

A consumer has preferences represented by the utility function U(x₁, x₂) = 10(x²₁ + 2x₁x₂ + x²₂) - 50. For this consumer, goods 1 and 2 are perfect substitutes.

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Definitions:

Technological Advance

The development and application of new technologies and methods, improving efficiency, productivity, or creating new products.

Vicious Circle

A complex chain of events that reinforces itself through a feedback loop, often leading to a detrimental situation.

Per Capita Incomes

The mean income received by an individual in a specific region or nation.

Saving and Investment

Refers to the portion of income not spent on consumption but utilized for acquiring assets or depositing in financial instruments for future returns.