Harvey Habit in Problem 9 Has a Utility Function U(c₁

question 8

Multiple Choice

Harvey Habit in Problem 9 has a utility function U(c₁, c₂) = min{c₁, c₂}. If he had an income of $440 in period 1 and $880 in period 2 and if the interest rate were 20%, how much would Harvey choose to spend on bread in period 1?

• A) $1,280
• B) $320
• C) $213.33
• D) $960
• E) $640

---

Definitions:

Person Analysis

An element of training needs assessment that evaluates individual employees’ performance to determine who needs training and what kind of training is needed.

Learning Management System

A software application or web-based technology used to plan, implement, and assess a specific learning process, typically used for educational courses or training programs.

Human Resource Department

The human resource department is responsible for managing employee-related processes in an organization, including recruitment, training, and benefits administration.

Employee Training

The process of enhancing the skills, capabilities and knowledge of employees for doing a particular job.