Phil Rupp's Sister Ethel Has the Utility Function U(x, Y)

question 54

Multiple Choice

Phil Rupp's sister Ethel has the utility function U(x, y) = min{ 5x + y, 6y}. Where x is measured on the horizontal axis and y on the vertical axis, her indifference curves consist of a

• A) horizontal line segment and a negatively sloped line segment which meet in a kink along the line x = y.
• B) vertical line segment and a horizontal line segment which meet in a kink along the line y = 5x.
• C) positively sloped line segment and a negatively sloped line segment which meet along the line x = y.
• D) vertical line segment and a horizontal line segment which meet in a kink along the line x = 5y.
• E) horizontal line segment and a positively sloped line segment which meet in a kink along the line x = 5y.

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Definitions:

Outsourcing

The practice of hiring external firms or individuals to perform tasks, handle operations or provide services that are either difficult to manage or are outside the company's core competencies.

Employee Leasing

The practice of hiring a workforce through an intermediary that provides personnel to work on a temporary or long-term basis.

PEO

A Professional Employer Organization, which is a firm that provides a service under which an employer can outsource employee management tasks, such as employee benefits, payroll and workers' compensation, recruiting, risk/safety management, and training and development.

Employment Costs

The total expenses borne by employers to hire and sustain employees, including wages, benefits, training, and other related expenses.