In Problem 1, Charlie Has a Utility Function U(x_A, X_B)

question 2

Multiple Choice

In Problem 1, Charlie has a utility function U(x_A, x_B) = x_Ax_B, the price of apples is $1, and the price of bananas is $2. If Charlie's income were $400, how many units of bananas would he consume if he chose the bundle that maximized his utility subject to his budget constraint?

• A) 100
• B) 20
• C) 200
• D) 50
• E) 300

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Definitions:

Strong Manipulation

The application of a significant change or intervention in an experiment, aiming to produce a noticeable effect on the dependent variable.

Internal Validity

The certainty with which results of an experiment can be attributed to the manipulation of the independent variable rather than to some other, confounding variable.

Ceiling Effect

Failure of a measure to detect a difference because it was too easy (also see floor effect).

Strongest Manipulation

In experimental research, the use of the most extreme or powerful version of the independent variable to assess its effects.