Mike's Utility Function Is U(c, D, H) = 4c

question 30

Multiple Choice

Mike's utility function is U(c, d, h) = 4c + 14d - d² - 6h, where d is the number of hours per day that he spends driving around, h is the average number of hours per day spent driving around by other citizens of his town, and c is the amount of money he has to spend on other things than gasoline and auto repairs. There are 1,001 identical citizens in Mike's home town. Mike's expenses for gasoline and auto repairs amount to $.50 per hour for the time he spends driving. If Mike believes that his amount of driving won't affect the amount that others drive, how many hours per day will he choose to drive?

• A) 7
• B) 8
• C) 6
• D) 3
• E) 0.50

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Definitions:

Cultural System

An organized collection of symbols, values, norms, and practices shared by a group, which guides behavior and influences social life.

Sanction

Measures taken by countries or international bodies to penalize others for certain behaviors or actions, often involving trade restrictions or economic penalties.

Social Control

Mechanisms, strategies, and institutions by which societies attempt to regulate individual behavior to maintain order and conformity.

Evolutionary Psychology

A theoretical approach in the social and natural sciences that examines psychological structure from a modern evolutionary perspective.