Joe Bob from Problem 12 Has a Cousin Martin Who

question 20

Multiple Choice

Joe Bob from Problem 12 has a cousin Martin who consumes goods 1 and 2. Martin 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 Martin's preferences?

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

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Definitions:

Latent Learning

A form of learning that is not immediately expressed in an overt response; it occurs without obvious reinforcement.

Tolman

An American psychologist known for his work in cognitive psychology and for his theory that learning involves the formation of mental maps.

Classically Conditioned

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Involuntary Responses

Automatic physical reactions to stimuli that do not require conscious thought, such as reflexes.