In Problem 2, Ambrose Has the Utility Function U(x₁, X₂)

question 21

Multiple Choice

In Problem 2, Ambrose has the utility function U(x₁, x₂) . If Ambrose were initially consuming 81 units of nuts (good 1) and 22 units of berries (good 2) , then what is the largest number of berries that he would be willing to give up in return for an additional 40 units of nuts?

• A) 4
• B) 8
• C) 11
• D) 33
• E) 2

---

Definitions:

Concern For Self

The degree to which an individual is primarily focused on their own interests, needs, and well-being.

Conflict Management

Strategies and processes employed to handle and resolve disputes or disagreements effectively, balancing the needs and interests of all parties involved.

Concern For Others

The regard or consideration for the wellbeing and interests of other people.

Stereotype Threat

The risk of confirming negative stereotypes about an individual's racial, ethnic, gender, or cultural group which can impair performance.