In Problem 7, Lolita's Utility Function Is U(x, Y)

question 13

Multiple Choice

In Problem 7, Lolita's utility function is U(x, y) , where x is her consumption of cow feed and y is her consumption of hay. If the price of cow feed is $.10, the price of hay is $1, and her income is $2 and if Lolita chooses the combination of hay and cow feed that she likes best from among those combinations she can afford, her utility will be

• A) 2.40.
• B) 3.40.
• C) 0.40.
• D) 1.90.
• E) 1.40.

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Definitions:

Carrier

(1) Associated with diseases inherited; (2) One who carries, transports; with insurance, it’s the company that provides the policy.

Approved Medical Bill

A health care invoice that has been processed and confirmed for payment by an insurance company or health plan.

Utilization Management (Review)

A process used in healthcare to optimize the use of resources and ensure that treatments provided to patients are appropriate, necessary, and efficient.

Managed Care

A health care delivery system designed to manage cost, utilization, and quality of health services.