Morris Has the Utility Function U(b, W) = 4b

question 19

Multiple Choice

Morris has the utility function U(b, w) = 4b + 4w and Philip has the utility function U(b, w) = bw, where b is the number of books consumed per month and w is bottles of wine consumed per month. If we draw an Edgeworth box with books on the horizontal axis and wine on the vertical axis and if we measure Morris's consumptions from the lower left corner of the box, then the contract curve contains

• A) a curve that gets steeper as you move from left to right.
• B) a straight line with slopepassing through the upper right corner of the box.
• C) a straight line with slopepassing through the lower left corner of the box.
• D) a straight line running from the upper right corner of the box to the lower left.
• E) a curve that gets flatter as you move from left to right.

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Definitions:

Rationalizations

The process of explaining an individual’s actions or decisions with seemingly logical reasons, even if these are not the true motivations.

Conformists

Individuals who follow the rules and norms of their society or group, often to fit in or gain approval.

White-Collar Crimes

Offenses committed by individuals, typically in a professional context, involving fraud, embezzlement, or other forms of dishonest or illegal business practices.

Racial Bias

Prejudice or preferential treatment towards individuals based on their race, often manifesting in unfair judgements or actions.