Ambrose's Utility Function Is

question 3

Multiple Choice

Ambrose's utility function is . If the price of nuts (good 1) is $1, the price of berries (good 2) is $6, and his income is $198, how many units of berries will Ambrose choose?

• A) 145
• B) 9
• C) 18
• D) 8
• E) 12

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Definitions:

Physical Health

The condition of an individual's body, including the absence of disease and the functioning of physical systems.

Internals

Refers to individuals who primarily see themselves as responsible for the outcomes of their actions and events in their lives, often associated with a high internal locus of control.

Cautious

Characterized by a desire to avoid risks and potential problems, showing carefulness and prudence in actions and decisions.

Externally Oriented

Focusing on the external environment and external stimuli rather than internal thoughts and feelings.