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

question 27

Multiple Choice

In Problem 2, Ambrose has the utility function U(x₁, x₂) . If Ambrose were initially consuming 49 units of nuts (good 1) and 12 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 32 units of nuts?

• A) 9
• B) 21
• C) 8
• D) 4
• E) 2

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Definitions:

Identity Crisis

A period of uncertainty and confusion in which a person's sense of identity becomes insecure, typically due to a change in their expected aims or roles in society.

Inferiority Complex

A psychological condition that arises from feelings of inadequacy and leads to overcompensation or withdrawal.

Intimacy

The sense of being close and emotionally connected and supported; it involves sharing thoughts, desires, and feelings with another.

Shame and Doubt

Shame and Doubt describe a developmental stage in Erik Erikson's theory, typically around early childhood, where children learn to assert their independence; if not handled well, they may feel inadequate.