Astrid's Utility Function Is U(H_A, C_A) = H_AC_A

question 16

Multiple Choice

Astrid's utility function is U(H_A, C_A) = H_AC_A. Birger's utility function is min{H_B, C_B}. If Astrid’s initial endowment is no cheese and 13 units of herring and if Birger’s initial endowments are 8 units of cheese and no herring, then where p is a competitive equilibrium price of herring and cheese is the numeraire, it must be that demand equals supply in the herring market. This implies that

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Definitions:

Pruning

In neuroscience, pruning is the process by which extra neurons and synaptic connections are eliminated over time to increase the efficiency of neuronal transmissions.

Neural Connections

The links between neurons in the brain, which are created, strengthened, or weakened through experiences and learning.

Sensation

The process by which sensory receptors and the nervous system receive and represent stimulus energies from the environment.

Stimulus

Anything in the environment that elicits a response from an organism, crucial in behaviorist theories of learning and conditioning.