Joe Bob from Problem 12 Has a Cousin Sam Who

question 2

Multiple Choice

Joe Bob from Problem 12 has a cousin Sam who consumes goods 1 and 2. Sam thinks that 2 units of good 1 is always a perfect substitute for 4 units of good 2. Which of the following utility functions is the only one that would not represent Sam's preferences?

• A) U(x₁, x₂) = 16x²₁ + 16x₁x₂ + 4x²₂.
• B) U(x₁, x₂) = min{ 4x₁, 2x₂}.
• C) U(x₁, x₂) = 40x₁ + 20x₂ - 10,000.
• D) U(x₁, x₂) = 4x₁ + 2x₂ + 1000.
• E) More than one of the above does not represent Sam's preferences.

Understand the definitions and components that constitute a team or group's structure.

Comprehend the significance and determinants of group size and composition for optimal functioning.

Identify different types of groups and the roles they play within larger systems.

Recognize the cues and factors that contribute to a group's perceived entitativity.

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Definitions:

Marginal Tax Rate

The rate at which the last dollar of income is taxed, indicating the percentage of additional income that will be taken as tax.

Income Increases

A rise in the amount of money received, especially on a regular basis, by an individual or group.

Progressive Tax

A tax system in which the tax rate increases as the taxable amount increases, thereby imposing a higher percentage rate on higher-income earners.

High-Income

Earning a substantial amount of money, typically above the median income level in a given region or country.