Charlie's Utility Function Is U(x_A, X_B) = X_Ax_B

question 29

Multiple Choice

Charlie's utility function is U(x_A, x_B) = x_Ax_B. If Charlie's income were $40, the price of apples were $2, and the price of bananas were $5, how many apples would there be in the best bundle that Charlie could afford?

• A) 20
• B) 6
• C) 4
• D) 5
• E) 10

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Definitions:

Crystallized Intelligence

The ability to use learned knowledge and experience, which typically increases with age.

Fluid Intelligence

The ability to think abstractly, reason, identify patterns, solve problems, and discern relationships without relying on acquired knowledge.

Competence

The ability to do something successfully or efficiently, often referring to a specific skill or set of skills.

Social Clock

A cultural or societal timetable that dictates the appropriate age or time frame for major life events, like marriage, parenthood, and retirement.